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 Year Ended January 31, 2018
(Based on Japanese GAAP)
March 15, 2018
Company name:Enigmo Inc.

Stock exchange listing: Tokyo
Stock code:
3665
Representative:
Inquiries:

URL

http://http://www.enigmo.co.jp/

Representative Director, CEO
Executive Officer,

Shokei SUDA
Yoichi KANEDA

Chief Director of Corporate Operation
Scheduled date of ordinary general meeting of shareholders:April 26, 2018

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

April 26, 2018–

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

Yes
Yes

TEL

03-6894-3665(for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended January 31, 2018 (from February 1, 2017 to January 31, 2018)(1) Consolidated operating results
Net salesYear ended January 31, 2018Year ended January 31, 2017

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen%
1,574(11.0)
1,556(11.7)
816(28.6)
1,768 705.2
1,763 712.7
1,143–

Millions of yen
4,492
4,147%
8.3
45.1

Earnings per share

Diluted earnings pershare

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
sales
parent/equity
Yen%%%–
22.7
31.7
35.1
–
43.6
42.0
42.6Yen
39.23
54.92

Year ended January 31, 2018Year ended January 31, 2017(2) Consolidated financial position

Total assets
As of January 31, 2018
As of January 31, 2017

Net assets

Equity ratio

Millions of yen
4,732
5,080

Millions of yen
4,010
3,194

Cash flows fromoperating activities
Millions of yen
68
1,873

Cash flows frominvesting activities
Millions of yen(9)263

Net assets per share%
84.7
62.9

Yen
192.59153.43(3) Consolidated cash flows

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

Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
–
3,885
–
3,823

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

Year ended January 31, 2017
Year ended January 31, 2018Year ending January 31, 2019
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (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. Notes(1) Changes in significant subsidiaries during the year ended January 31, 2018(changes in specified subsidiaries resulting in the change in scope of consolidation):Yes(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:
Changes in accounting policies due to other reasons:

NoNo

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

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of January 31, 2018

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 January 31, 2018

500,000 shares As of January 31, 2017

500,000 shares

20,821,000 shares Year ended January 31, 2017

20,821,000 shares

Average number of shares during the period
Year ended January 31, 2018

2Consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of January 31, 2017

As of January 31, 2018

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

3,823,547
154,0893,885,842
201,788

Advance payments - trade
Deferred tax assets

350,375
55,861

410,908
13,104

Income taxes receivable
Other–
66,29941,262
22,323

Allowance for doubtful accounts
Total current assets

(756)

–

4,449,417

4,575,229

Non-current assets
Property, plant and equipment
Buildings, net

8,065

49,292Tools, furniture and fixtures, net

17,24918,961

Total property, plant and equipment

25,314

68,254452,487
27,652–
20,7541818

480,159

20,772

Investment securities
Shares of subsidiaries and associates–
17,820575
104

Deferred tax assets
Other

13,93493,7138,816
59,175

Total investments and other assets

125,468

68,671

630,942

157,699

5,080,360

4,732,928

Intangible assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets

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

170,701

Income taxes payable
Accrued consumption taxes

622,632
121,015–
33,973

Deposits received
Provision for point card certificates

940,135
36,025427,515
52,646

Other
Total current liabilities

19,654

22,404

1,885,439

707,241–

15,423

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

3–

15,423

1,885,439

722,664(Thousands of yen)
As of January 31, 2017

As of January 31, 2018

Net assets
Shareholders' equity
Capital stock

381,903381,903

Capital surplus
Retained earnings

391,474
2,830,286

391,473
3,633,511

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

Total shareholders' equity

3,188,283

3,991,508

Deferred gains or losses on hedges
Foreign currency translation adjustment

5,356
978(1,181)
19,639Total accumulated other comprehensive income

6,335

18,457301

297

3,194,920

4,010,263

5,080,360

4,732,928

Accumulated other comprehensive income

Subscription rights to shares
Total net assets
Total liabilities and net assets

4Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Thousands of yen)
Fiscal year ended
January 31, 2017
Net sales

Fiscal year endedJanuary 31, 2018

4,147,824

4,492,829

Cost of sales

663,988804,873

Gross profit

3,483,835

3,687,956

Selling, general and administrative expenses

1,715,157

2,112,978Operating profit

1,768,678

1,574,978

575

233

2,115
3,126

5,052
–

172

324

5,989

5,610

11,152
101

24,017118

Non-operating income
Interest income
Foreign exchange gains
Interest on refund
Other
Total non-operating income
Non-operating expenses
Share of loss of entities accounted for using equity method
Other
Total non-operating expenses

11,254

24,135

1,763,414

1,556,452

Gain on change in equity
Gain on sales of non-current assets

28,294–

20,462
13

Gain on reversal of subscription rights to shares
Other

24
1,063

4
–

Total extraordinary income

29,383

20,480Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets–

13

Impairment loss
Head office transfer cost

15,232–426,987
1,685

Loss on sales of shares of subsidiaries and associates
Provision of allowance for doubtful accounts–
32,40430,210–Total extraordinary losses

47,637458,896

1,745,160
608,978

1,118,037
250,239(7,258)50,984

Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

5

601,719

301,224

1,143,440

816,812––

1,143,440

816,812

Consolidated statements of comprehensive income(Thousands of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total other comprehensive income

Fiscal year ended

Fiscal year endedJanuary 31, 2017

January 31, 2018

1,143,440

816,812–2,225–(6,538)

97818,6603,20412,122Comprehensive income

1,146,644

828,934

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,146,644

828,934––

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of changes in equity
Fiscal year ended January 31, 2017
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
period381,903

Capital surplus

Retained earnings

Treasury shares

391,474

1,686,846(415,380)

Total
shareholders'equity2,044,843

Changes of items during period
Profit attributable to owners ofparent1,143,440

1,143,440––

Change of scope of equity method
Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period––

1,143,440–

1,143,440

381,903391,474

2,830,286(415,380)

3,188,283

Accumulated other comprehensive income

Balance at beginning of current
periodDeferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Total accumulated
othercomprehensive
income3,131–

3,131

Subscription
rights to shares

Total net assets

326

2,048,301

Changes of items during period
Profit attributable to owners ofparent

1,143,440

Change of scope of equity method
Net changes of items other thanshareholders' equity

–
2,225

978

3,204(24)3,179

Total changes of items during period

2,225

978

3,204(24)1,146,619

Balance at end of current period

5,356

978

6,335

301

3,194,920

7Fiscal year ended January 31, 2018
(Thousands of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
period381,903

Capital surplus

Retained earnings

Treasury shares

391,474

2,830,286(415,380)

Total
shareholders'equity
3,188,283

Changes of items during period
Profit attributable to owners ofparent

816,812Purchase of shares of consolidated
subsidiaries

816,812(1)(1)

Change of scope of equity method(13,587)(13,587)

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

––

(1)

803,225–

803,224

381,903391,473

3,633,511(415,380)

3,991,508

Accumulated other comprehensive income

Balance at beginning of current
periodDeferred gains orlosses on hedges

Foreign currencytranslation
adjustment

Total accumulated
othercomprehensive
income

5,356

978

6,335

Subscription
rights to shares

Total net assets

301

3,194,920

Changes of items during period
Profit attributable to owners ofparent

816,812Purchase of shares of consolidated
subsidiaries(1)

Change of scope of equity method(13,587)

Net changes of items other thanshareholders' equity(6,538)

Total changes of items during period(6,538)18,66012,122(4)

815,342

Balance at end of current period(1,181)

19,63918,457297

4,010,263

18,66012,1228(4)12,118

Consolidated statements of cash flows(Thousands of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

January 31, 2017

January 31, 2018

1,745,160

1,118,037

Depreciation
Impairment loss

19,821
15,232

21,148426,987

Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts

34,15033,16025,612(756)

Increase (decrease) in provision for point card certificatesInterest and dividend income

12,769(575)

16,621(233)

Loss (gain) on sales of shares of subsidiaries and associates
Foreign exchange losses (gains)–
284

30,210313

Share of (profit) loss of entities accounted for using equity
method11,15224,017

Loss (gain) on change in equity
Gain on reversal of subscription rights to shares(28,294)(24)(20,462)(4)

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories(29,702)998(77,769)(7,078)

Increase (decrease) in accounts payable - otherIncrease (decrease) in deposits received(99,023)(166,848)

21,781(494,161)

Other, net

151,991(111,739)

Subtotal

1,700,253

972,524

Interest and dividend income received
Income taxes paid
Net cash provided by (used in) operating activities

575

233

172,814(904,444)

1,873,642

68,313300,000(4,285)–(48,772)–

17,046(679)(58,751)–––

22,635236,284(9,090)Cash flows from investing activities
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Purchase of shares of subsidiaries and associates
Payments for lease and guarantee deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

––

1,798

3,071

Net increase (decrease) in cash and cash equivalents

2,111,725

62,294

Cash and cash equivalents at beginning of period

1,684,469

3,823,547

27,351–

3,823,547

3,885,842

Increase (decrease) in cash and cash equivalents resulting fromchange of scope of consolidation
Cash and cash equivalents at end of period9