May 8, 2020

Consolidated Financial Results(Japanese Accounting Standards)
for the Fiscal Year 2019
UNITED, Inc.
Tokyo Stock Exchange
2497
https://united.jp/
Tomonori Hayakawa, CEO
Takahiro Fukushima, General Manager, Corporate Administration Division
Tel. +81-3-6821-0000
Scheduled date of the Annual General Meeting of Shareholders:June 18, 2020
Scheduled date for filing of securities report:
June 19, 2020
Scheduled date of commencement of dividend payment:
June 19, 2020
Supplementary documents for financial results:
YES
Financial results briefing:
YES(For securities analysts and institutional investors)
Company name:
Stock exchange listing:Stock code:
URL:
Representative:
Contact:(Amounts of less than one million yen are rounded down.)
1.Consolidated Financial Results for Fiscal Year 2019 (April 1, 2019 - March 31, 2020)(1) Consolidated Results of Operations (Accounting Total)
Net salesMil.¥
20,911
27,580Fiscal Year 2019
Fiscal Year 2018
(Note)Comprehensive income:Operating income

Mil.¥
％％
△24.2
5,101
△54.0
90.9
11,084572.5
March 31, 2020: △11,417 million yen ( －%)March 31, 2019: 30,764 million yen ( －%)Diluted net
Net incomeReturnincome
per shareon equity
per share

Returnon assets

Yen
Yen％
62.45
－4.2
Fiscal Year 2019304.30303.1628.1
Fiscal Year 2018
(Reference) Equity in earnings(losses) of affiliates:
March 31, 2020: 39 million yen
March 31, 2019: △8 million yen(Percentages show year-on-year changes)
Profit attributable toOrdinary income
owners of parentMil.¥
Mil.¥
％
％
5,111
△53.8
1,403
△80.0
11,058
579.8
7,008
725.0

Operatingincomemargin％
11.3
31.7％
24.4
40.2

(2) Consolidated Financial Position
Total assets
Mil.¥
Fiscal Year 201933,592(As of March 31,2020)
Fiscal Year 201857,230(As of March 31,2019)(Reference) Capital: March 31, 2020: 26,313 million yen

Net assets

Equity ratio

Equity per share

Mil.¥％

Yen

26,53278.3

1,177.41

40,10069.7

1,729.70

Cash flow fromfinancing activities

Cash and cash
equivalents at end ofperiod

March 31, 2019: 39,867 million yen(3) Consolidated Cash Flows
Cash flow fromoperating activities

Fiscal Year 2019
Fiscal Year 2018

Cash flow frominvesting activities

Mil.¥Mil.¥Mil.¥Mil.¥

2,007
9,103

△367
△4,942△2,069
△927

8,381
8,822

2.Dividend Per Share
End of 1st

End of 2nd

End of 3rd

End ofAnnual

quarterquarterquarter

perioddividend

Record date
Yen
Fiscal Year 2018
Fiscal Year 2019
Fiscal Year 2020
(expected)

――

Yen
24.00
11.00

―
―

Yen

Yen
37.00
2.00

Yen
61.00
13.00

―

―

―

―

―

Total
amount ofdividends

Dividend
payout
ratio

Yen
1,405
290

20.0
20.8

Dividends tonet assets
ratio%―%
3.5
1.1

*Notes(1) Changes of important subsidiaries during the period(Changes of specific subsidiaries in accordance with changes in the scope of consolidation):Yes
Newly consolidated subsidiaries : None
Subsidiaries excluded from consolidation : COINAGE, Inc.
(2) Changes in accounting policies and changes or restatement of accounting estimates(i) Changes in accounting policies caused by revision of accounting standard:(ii) Changes in accounting policies other than (i):(iii) Changes in accounting estimates:(iv) Restatement:

None
None
None
None

(3) Number of shares outstanding (Common stock):(i) Number of shares outstanding at the end of the period (including treasury stock)
As of March 31, 2020:
23,671,845 shares
As of March 31, 2019:23,671,845 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2020:
1,323,045 shares
As of March 31, 2019:
622,995 shares(iii) Average number of shares during the term
As of March 31, 2020:
22,479,764 shares
As of March 31, 2019:23,031,308 shares(Reference)Non-consolidated Financial Results for Fiscal Year 2019 (April 1, 2019 - March 31, 2020)(1) Non-consolidated Results of Operations (Accounting Total)
Net sales
Operating income
Ordinary incomeMil.¥Mil.¥Mil.¥％％％
14,9896,325
6,317△32.9
△49.8
△49.8
Fiscal Year 201922,332
104.8
12,592822.5
12,594
832.1
Fiscal Year 2018

Net income
Mil.¥％
193
7,966△97.6890.4

Diluted net
Net income
incomeper shareper share
Fiscal Year 2019
Fiscal Year 2018

Yen

Yen

8.61
345.89―344.59(2) Non-consolidated Financial Position
Total assets
Mil.¥
Fiscal Year 2019
32,556(As of March 31,2020)
Fiscal Year 201856,825(As of March 31,2019)(Reference) Capital: March 31, 2020: 26,699 million yen

Net assets

Equity ratio

Equity per share

Mil.¥％

Yen

26,91782.0

1,194.67

41,59172.9

1,796.68

March 31, 2019: 41,441 million yen*Regarding the status of audit procedure implementation- These Consolidated Financial Results are not subject to the Financial Instruments and Exchange Act.
*Explanations and other special notes concerning the appropriate use of business performance forecasts- Consolidated earnings forecast for the next fiscal year is not stated because it is difficult to produce a rational full-year
earnings forecast.
- We have decided to cancel the FY2019 Financial Results Briefing (for institutional investors and analysts) originally scheduled for May 8, 2020
as a precaution against the outbreak of COVID-19. The financial results materials and explanation video will be uploaded on our website.

UNTIED Consolidated Financial Statements(1)UNITED Consolidated Balance Sheets(Unit:Thousands of Yen)
Items of an account

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Operational investment securities
Inventories
Derivatives
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Tools, furniture and fixtures
Accumulated depreciation
Total property, plant and equipment
Intangible assets
GoodwillSoftware
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Deferred tax assets
Lease and guarantee deposits
Other
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds payable
Accounts payable - other
Income taxes payable
Provision for point card certificates
Provision for loss on business liquidation
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term loans payable
Deferred tax liabilities
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
Total liabilities and net assets

FY2018(As of March 31,2019)

FY2019(As of March 31,2020)

AmountAmount8,822,421
1,781,226
39,190,609
70,644
1,344,506(5,383)
51,204,024

8,381,660
1,693,870
20,992,218
38,31642,251
860,153(8,069)32,000,401

447,486
413,345(315,863)
544,967

401,752
225,146(195,384)
431,514

4,125,545
431,243
1,025
4,557,814

114,881360,359
1,025
476,266

121,298
199,931
66,811
513,473
21,790923,305
6,026,088
57,230,112

58,057
155,718
115,931
332,56721,790
684,064
1,591,845
33,592,246

1,414,107
100,000
187,468
388,184
3,946,314
30,251
138,955
390,437
6,595,718

855,717
100,000
50,00071,040300,992
150,418
5,063
591,1032,124,336

334,758
10,198,960
10,533,718
17,129,436

175,000
178,340
4,582,458
4,935,798
7,060,134

2,923,019
2,385,813
10,954,274(892,077)
15,371,029

2,923,019
2,332,513
11,259,492(1,884,315)
14,630,709

24,501,737(5,216)24,496,520
180,165
52,95940,100,675
57,230,112

11,662,068
29,314(8,368)
11,683,014
218,388
26,532,112
33,592,246

(2)UNITED Consolidated Statements of Income(Unit:Thousands of Yen)

Items of an accountNet sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividend income
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Share of loss of entities accounted for using equity method
Commission fee
Other
Total non-operating expenses
Ordinary incomeExtraordinary income
Gain on liquidation of subsidiaries and associates
Gain on sales of shares of subsidiaries and associates
Gain on sale of businesses
Gain on reversal of share acquisition rights
Other
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Impairment loss
Loss on valuation of investment securities
Loss on sales of shares of subsidiaries and associates
Loss on liquidation of subsidiaries and associates
Loss on liquidation of business
Office transfer expenses
Office restructuring expensesBurden charge payment
Other
Total extraordinary losses
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit（ｌoss） attributable to non-controlling interests
Profit attributable to owners of parent

FY2018(April 1,2018
to March 31,2019)

FY2019(April 1,2019
to March 31,2020)

AmountAmount27,580,572
11,506,313
16,074,258
4,989,961
11,084,297

20,911,573
11,131,288
9,780,284
4,679,237
5,101,046

670
7,541
8,212

241
39,447
8,348
48,0383,230
15,976
8,562
1,500
4,728
33,998
11,058,511

4,438
15,266
11,027
7,277
38,0095,111,075

42,194
8,299
50,49475,52010,0001,818
2,000
89,338

7,916
58,544106,291
411,078
24,041
134,783
18,263760,919
10,348,085
4,009,899(443,556)
3,566,342
6,781,743(226,750)
7,008,494

655
2,873,120
58,685
438,775
79,216
131,613
48,284
11,276
3,641,627
1,558,785
174,549(12,082)
162,467
1,396,318(7,542)
1,403,861

(3)UNITED Consolidated Statements of Comprehensive Income(Unit:Thousands of Yen)

Items of an account

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

FY2018(April 1,2018
to March 31,2019)

FY2019(April 1,2019
to March 31,2020)

AmountAmount
6,781,743

1,396,318

24,009,339(26,634)
23,982,704
30,764,447(12,873,013)
29,314(3,152)
33,345(12,813,506)(11,417,187)

30,991,198(226,750)(11,409,644)(7,542)

Statements of Changes in Equity
FY2018(April 1,2018-March 31,2019)(Unit:Thousands of Yen)
Shareholders' equity

Capital stock

Balance at the beginning of current period

Capital surplus

Retained earnings

4,544,558

Treasury shares(964,962)

Total shareholders'equity

2,922,037

2,993,747

9,495,380

981

981

1,963

(630,255)(630,255)

Changes of items during period
Issuance of new shares
Purchase of shares of consolidated subsidiaries
Dividends of surplus(598,777)(598,777)

Profit attributable to owners of parent

7,008,494

7,008,494

Disposal of treasury shares

21,33972,884

94,224

Net changes of items other than shareholders'equityTotal changes of items during period
Balance at the end of current period

981(607,934)

6,409,716

72,884

5,875,648

2,923,019

2,385,813

10,954,274(892,077)

15,371,029

Accumulated other comprehensive income

Balance at the beginning of current period

Valuation difference onavailable-for-salesecurities

Foreign currencytranslation adjustment

Total accumulated othercomprehensive income

492,397

21,418513,816

Subscription rights toshares

159,353

Non-controllinginterests

112,746

Total net assets

10,281,297

Changes of items during period
Issuance of new shares

1,963

Purchase of shares of consolidated subsidiaries(630,255)

Dividends of surplus(598,777)

Profit attributable to owners of parent

7,008,494

Disposal of treasury shares

94,224

Net changes of items other than shareholders'equity24,009,339(26,634)

23,982,704

20,812(59,786)

23,943,729

Total changes of items during period

24,009,339(26,634)

23,982,704

20,812(59,786)

29,819,378

24,501,737(5,216)24,496,520

180,165

52,95940,100,675

Balance at the end of current period

Statements of Changes in Equity
FY2019(April 1,2019-March 31,2020)(Unit:Thousands of Yen)
Shareholders' equity

Capital stock

Balance at the beginning of current period

Capital surplus

2,923,019

Retained earnings

2,385,813

10,954,274

Treasury shares(892,077)

Total shareholders'equity

15,371,029

Changes of items during period
Purchase of shares of consolidated subsidiaries(53,299)(53,299)

Dividends of surplus(1,098,644)(1,098,644)

Profit attributable to owners of parent

1,403,861

1,403,861

Purchase of treasury shares(992,237)(992,237)

Net changes of items other than shareholders'equityTotal changes of items during period
Balance at the end of current period―(53,299)

305,217(992,237)(740,319)

2,923,019

2,332,513

11,259,492(1,884,315)

14,630,709

Accumulated other comprehensive income

Balance at the beginning of current period

Valuation difference on
available-for-salesecurities

Deferred gains or losses
on hedges

Foreign currencytranslation adjustment

Total accumulated othercomprehensive income

24,501,737―(5,216)24,496,520

Subscription rights toshares

180,165

Non-controllinginterests

Total net assets

52,95940,100,675

Changes of items during period
Purchase of shares of consolidated subsidiaries(53,299)

Dividends of surplus(1,098,644)

Profit attributable to owners of parent

1,403,861

Purchase of treasury shares(992,237)

Net changes of items other than shareholders'equity(12,839,668)

29,314(3,152)(12,813,506)

38,222(52,959)(12,828,243)

Total changes of items during period(12,839,668)

29,314(3,152)(12,813,506)

38,222(52,959)(13,568,563)

11,662,068

29,314(8,368)

11,683,014

218,388―

26,532,112

Balance at the end of current period

(5)UNITED Consolidated statements of cash flows(Unit:Thousands of Yen)

Items of an accountCash flows from operating activities
Income before income taxes
Depreciation
Amortization of goodwill
Share-based compensation expenses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for point card certificatesInterest and dividend income
Interest expenses
Share of (profit) loss of entities accounted for using equity method
Loss on retirement of non-current assets
Impairment loss
Loss (gain) on valuation of investment securities
Gain on sales of shares of subsidiaries and associates
Loss on sales of shares of subsidiaries and associates
Loss on liquidation of subsidiaries and associates
Decrease (increase) in notes and accounts receivable - tradeDecrease (increase) in investment securities for sale
Increase (decrease) in notes and accounts payable - trade
Decrease (increase) in accounts receivable - other
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of shares of subsidiaries and associates
Purchase of investments in subsidiaries resulting change in scope of consolidation
Payments for sales of shares of subsidiaries resulting in change in scope of consolidation
Proceeds from sale of businesses
Other, netNet cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Proceeds from issuance of subscription rights to share
Purchase of treasury shares
Cash dividends paid
Payments from changes in ownership interests in subsidiaries that do not result in change in scope of consolidationNet cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period

FY2018(April 1,2018
to March 31,2019)

FY2019(April 1,2019
to March 31,2020)

AmountAmount10,348,085
227,415
647,484
56,895(199)(34,369)
(670)
3,230
8,562
58,544106,291
411,078
126,142(1,614,508)(55,125)(883,054)
413,375
9,819,177
670(3,230)(713,319)
9,103,298

1,558,785
216,075
820,001
35,204
2,685(11,784)
(241)
4,438
(39,447)655
2,873,120
58,685(75,520)
438,775(147,817)(215,599)(225,634)
798,324
256,904
6,347,611
241(4,438)(4,336,016)
2,007,398(547,549)(423,966)(41,236)(208,201)(3,708,474)(13,496)(4,942,924)(34,988)(161,034)(260,355)
10,00079,199(367,178)

250,000(79,899)
68,404(595,824)(570,055)(927,373)
12,912
3,245,912
5,576,508
8,822,421(153,449)
250,000(25,000)(992,237)(1,095,119)(53,299)(2,069,105)(11,874)(440,760)
8,822,421
8,381,660