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 Consolidated Financial Results
for the Six Months Ended July 31, 2017
(Based on Japanese GAAP)
September 13, 2017
Company name:Enigmo Inc.
Stock exchange listing: Tokyo
Stock code:
Representative:3665
URL: http://www.enigmo.co.jp/
Representative Director, CEO

Inquiries:

Executive Officer,
Chief Director of Corporate Operation

Shokei SUDA
Yoichi KANEDA

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

September 13, 2017–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
Yes

TEL: +81-3-6894-3665(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended July 31, 2017 (from February 1, 2017 to July 31, 2017)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating income
Ordinary income
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Six months ended July 31, 2017
2,058
7.8
682 (16.9)
671 (18.5)454 (17.3)
Six months ended July 31, 2016
1,909
59.4
821–824–549–
Earnings per share

Diluted earnings per share

Yen
21.82
26.39

Six months ended July 31, 2017
Six months ended July 31, 2016

Yen––(2) Consolidated financial position
Total assets

Net assets

Millions of yen
4,7895,080

As of July 31, 2017
As of January 31, 2017

Equity ratio

Millions of yen
3,639
3,194%
76.0
62.9

2. Cash dividends
Annual dividends per share

Year ended January 31, 2017
Year ending January 31, 2018

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
0.00
0.00

Yen–

Yen
0.00

Yen
0.00

–

0.00

0.00

Year ending January 31, 2018 (Forecast)Total

3. Forecast of consolidated financial results for the year ending January 31, 2018 (from February 1, 2017 to January 31, 2018)
Net sales
Full yearMillions of yen
4,418

Percentages indicate year-on-year changes
Profit attributable toOperating income
Ordinary income
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
6.5
1,423 (19.5)
1,426 (19.1)
539 (52.8)
25.90

1

* Notes(1) Changes in significant subsidiaries during the six months ended July 31, 2017(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

No(3) 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:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of July 31, 2017

21,321,000 shares As of January 31, 2017

21,321,000 shares

Number of treasury shares at the end of the period
As of July 31, 2017

500,000 shares As of January 31, 2017

500,000 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended July 31, 2017

21,321,000 shares Six months ended July 31, 2016

2

21,321,000 shares

Quarterly consolidated financial statements
Quarterly consolidated balance sheets(Thousands of yen)
As of January 31, 2017

As of July 31, 2017

AssetsCurrent assets
Cash and deposits

3,823,547

3,252,362

Accounts receivable - trade154,089

182,879

Advance payments - trade350,375

589,025

Deferred tax assets

55,861

23,582

Other66,29970,200(756)(1,512)

4,449,417

4,116,539

Buildings, net

8,065

58,079Tools, furniture and fixtures, net

17,24923,548

Total property, plant and equipment

25,314

81,627452,487

435,412

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Intangible assets
Goodwill
Other

27,671

24,692

Total intangible assets

480,159

460,105

Shares of subsidiaries and associates

17,82025,372

Deferred tax assets

13,934

10,208Investments and other assets

Other

93,713

95,451

Total investments and other assets

125,468

131,031630,942

672,764

5,080,360

4,789,304

Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - other145,975

128,182

Income taxes payable

622,632

211,071

Accrued consumption taxes

121,015

18,586

Deposits received

940,135

688,986

Provision for point card certificates

36,02539,362

Other

19,654

48,237

1,885,439

1,134,425–15,341

Total current liabilities
Non-current liabilities
Asset retirement obligations
Total non-current liabilities
Total liabilities

3–15,341

1,885,439

1,149,767

(Thousands of yen)
As of January 31, 2017

As of July 31, 2017

Net assets
Shareholders’ equity
Capital stock

381,903381,903

Capital surplus

391,474

391,473

Retained earnings

2,830,286

3,281,680

Treasury shares(415,380)(415,380)

Total shareholders’ equity

3,188,283

3,639,677

5,356

(609)

Accumulated other comprehensive income
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets

4978

167

6,335(441)

301

301

3,194,920

3,639,537

5,080,360

4,789,304

Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income
Quarterly consolidated statements of income

Six months ended
July 31, 2016
1,909,899

Net sales(Thousands of yen)Six months ended
July 31, 2017
2,058,546

Cost of sales

300,537

355,456

Gross profit

1,609,361

1,703,089

Selling, general and administrative expenses

787,376

1,020,165

Operating income

821,985

682,924

Non-operating income
Interest income

474

135

Foreign exchange gains

753

1,670

3,151

–

Interest on refund
Other

24

202

4,404

2,008

Share of loss of entities accounted for using equity method

575

12,910

Other

852

22

Total non-operating income
Non-operating expenses

Total non-operating expenses
Ordinary income

1,427

12,933824,961

671,999

Extraordinary income
Gain on reversal of subscription rights to shares
Gain on change in equity
Other
Total extraordinary income

8–28,294

20,462–13

28,302

20,476Extraordinary losses
Impairment loss–

112

32,404–

Head office transfer cost–

1,685

Other–

13

32,404

1,810

Profit before income taxes

820,860

690,664

Income taxes - current

240,890

197,550

Provision of allowance for doubtful accounts

Total extraordinary losses

Income taxes - deferred

30,45838,862

Total income taxes

271,349

236,412

Profit549,510454,252

Profit attributable to non-controlling interests
Profit attributable to owners of parent

5––549,510454,252

Quarterly consolidated statements of comprehensive income

Six months ended
July 31, 2016
549,510

Profit(Thousands of yen)Six months ended
July 31, 2017454,252

Other comprehensive income
Deferred gains or losses on hedges(47,864)(5,965)

Foreign currency translation adjustment(6,996)(811)

Total other comprehensive income(54,861)(6,777)494,649

447,475

494,649

447,475––

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

6Quarterly consolidated statements of cash flows(Thousands of yen)Six months ended
July 31, 2017

Six months ended
July 31, 2016
Cash flows from operating activities
Profit before income taxes

820,860

690,664

Depreciation

9,208

9,594

Amortization of goodwill

17,075

17,075

Impairment loss

–112

Increase (decrease) in allowance for doubtful accounts

32,404

756

Increase (decrease) in provision for point card certificates

4,569

3,337

Interest and dividend income(474)(135)

Foreign exchange losses (gains)

820

218

Gain on reversal of subscription rights to shares
Share of (profit) loss of entities accounted for using equity
methodLoss (gain) on change in equity

(8)

–

575

12,910(28,294)(20,462)

Decrease (increase) in notes and accounts receivable - trade(18,402)(28,790)

Increase (decrease) in accounts payable - other(96,767)(17,553)

Increase (decrease) in deposits received(82,935)(256,969)

Other, net

308,219(330,421)

Subtotal

966,850

80,336

Interest and dividend income received

474

135

167,859(603,158)

1,135,184(522,685)

300,000–(498)(46,481)

27,351

–

(575)

––

(3,194)326,278(49,676)(9,042)

1,176

Net increase (decrease) in cash and cash equivalents

1,452,420(571,185)

Cash and cash equivalents at beginning of period

1,684,469

3,823,547

Cash and cash equivalents at end of period

3,136,889

3,252,362

Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Purchase of shares of subsidiaries and associates
Other, net
Net cash provided by (used in) investing activities
Effect of exchange rate change on cash and cash equivalents

7