Artner : Summary of Non-consolidated Financial Results for the Three Months Ended April 30, 2022 (Under Japanese GAAP)

Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

June 8, 2022

	Summary of Non-consolidated Financial Results
	for the Three Months Ended April 30, 2022
	(Under Japanese GAAP)
Company name:	Artner Co., Ltd.
Listing:	Tokyo Stock Exchange
Securities code:	2163
URL:	https://www.artner.co.jp/
Representative:	SEKIGUCHI Sozo, President and CEO
Inquiries:	HARIGAE Tomonori, Director; Head of the Management Division
Telephone:	[phone]

Scheduled date to file quarterly securities report:

June 10, 2022

Scheduled date to commence dividend payments:

-

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results briefing:

Yes (for individual investors)

(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Non-consolidated financial results for the three months ended April 30, 2022 (from February 1, 2022 to April 30, 2022)

(1) Non-consolidatedoperating results (cumulative)

(Percentages indicate year-on-year changes.)

Net sales

Operating profit

Ordinary profit

Profit

Three months ended

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

April 30, 2022

2,232

11.4

378

16.0

379

15.0

263

15.1

April 30, 2021

2,003

6.9

326

21.1

329

21.8

228

22.1

Earnings per share

Diluted earnings per share

Three months ended

Yen

Yen

April 30, 2022

24.78

―

April 30, 2021

21.53

―

(2) Non-consolidated financial position

Total assets

Net assets

Equity ratio

As of

Millions of yen

Millions of yen

%

April 30, 2022

5,366

3,627

67.6

January 31, 2022

5,088

3,582

70.4

Reference: Equity

As of April 30, 2022:

¥ 3,627 million

As of January 31, 2022:

¥ 3,582 million

2. Cash dividends

Annual dividends per share

First quarter-end

Second quarter-end

Third quarter-end

Fiscal year-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended

―

14.00

―

20.50

34.50

January 31, 2022

Fiscal year ending

―

January 31, 2023

Fiscal year ending

19.00

―

19.00

38.00

January 31, 2023 (Forecast)

Note: Revisions to the forecast of cash dividends most

recently announced:

None

3. Forecast of non-consolidated financial results for the year ending January 31, 2023 (from February 1, 2022 to January 31, 2023)

(Percentages indicate year-on-year changes.)

	Net sales		Operating profit	Ordinary profit	Profit			Earnings per share
	Millions of yen			%	Millions of yen		%	Millions of yen		%	Millions of yen		%	Yen
Full year	8,798			8.6	1,147		13.6	1,150		11.4	797		9.4	75.01

Note: Revisions to the forecast of non-consolidated financial results most recently announced: None

Note: Only the full-year forecast is shown because ARTNER manages performance on a fiscal year basis.

1

* Notes

1. Adoption of accounting treatment specific to the preparation of quarterly non-consolidated financial statements: None
2. Changes in accounting policies, changes in accounting estimates, and restatement
3. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
4. Number of issued shares (common shares)
5. 1. Total number of issued shares at the end of the period (including treasury shares)

As of April 30, 2022	10,627,920 shares
As of January 31, 2022	10,627,920 shares

1. Number of treasury shares at the end of the period

As of April 30, 2022	2,376 shares
As of January 31, 2022	2,376 shares

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended April 30, 2022	10,625,544 shares
Three months ended April 30, 2021	10,625,544 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters

(Caution regarding forward-looking statements, etc.)

The forward-looking statements, including earnings forecasts, contained in these materials are based on information currently available to the Company and on certain assumptions deemed to be reasonable. Consequently, the statements herein do not constitute assurances regarding the Company's actual results. Actual financial and other results may differ substantially from the statements herein due to various factors.

2

Quarterly non-consolidated financial statements

Non-consolidated balance sheets

					(Thousands of yen)
		As of January 31, 2022		As of April 30, 2022
Assets
Current assets
Cash and deposits	3,554,199	3,585,365
Notes and accounts receivable - trade	1,011,154	1,158,122
Work in process			950		4,707
Raw materials and supplies		3,637		3,740
Other	51,712	75,835
Allowance for doubtful accounts		6,000		6,900
Total current assets	4,615,653	4,820,870
△			△
Non-current assets
Property, plant and equipment	82,431	82,248
Intangible assets	37,143	37,436
Investments and other assets
Leasehold and guarantee deposits	84,959	94,726
Other	268,796	331,039
Total investments and other assets	353,755	425,765
Total non-current assets	473,330	545,450
Total assets	5,088,983	5,366,321
Liabilities
Current liabilities
Income taxes payable	232,197	189,008
Provision for bonuses	141,450	311,507
Other	553,556	632,567
Total current liabilities	927,204	1,133,083
Non-current liabilities
Provision for retirement benefits	579,533	605,683
Total non-current liabilities	579,533	605,683
Total liabilities	1,506,737	1,738,766
Net assets
Shareholders' equity
Share capital	238,284	238,284
Capital surplus	168,323	168,323
Retained earnings	3,171,444	3,216,930
Treasury shares			739			739
Total shareholders' equity	3,577,312	3,622,798
△		△
Valuation and translation adjustments
Valuation difference on available-for-sale		4,933		4,756
securities
Total valuation and translation adjustments		4,933		4,756
Total net assets	3,582,246	3,627,554
Total liabilities and net assets		5,088,983	5,366,321

3

Non-consolidated statements of income (cumulative)

				(Thousands of yen)
		Three months ended	Three months ended
		April 30, 2021		April 30, 2022
Net sales	2,003,655	2,232,489
Cost of sales	1,197,218	1,387,242
Gross profit	806,437	845,247
Selling, general and administrative expenses	480,352	467,134
Operating profit	326,084	378,112
Non-operating income
Interest income		0		0
Dividend income		47		55
Commission income		154		145
Sales income of training materials		550		486
Subsidy income		2,108		－
Gain on forfeiture of unclaimed dividends		689		633
Other		274		131
Total non-operating income		3,826		1,452
Non-operating expenses
Interest expenses		－		130
Other		404		353
Total non-operating expenses		404		484
Ordinary profit	329,507	379,081
Extraordinary losses
Loss on retirement of non-current assets		0		－
Total extraordinary losses		0		－
Profit before income taxes	329,507	379,081
Income taxes - current	160,579	178,334
Income taxes - deferred	△	59,792	△	62,562
Total income taxes	100,786	115,772
Profit		228,720	263,308

4

Non-consolidated statements of cash flows

(Thousands of yen)

Three months ended

Three months ended

April 30, 2021

April 30, 2022

Cash flows from operating activities

Profit before income taxes

329,507

379,081

Depreciation

6,871

6,197

Increase (decrease) in allowance for doubtful accounts

800

900

Increase (decrease) in provision for bonuses

153,654

170,057

Increase (decrease) in provision for retirement benefits

21,682

26,150

Interest and dividend income

△

48

△

55

Interest expenses

－

130

Decrease (increase) in accounts receivable - other

3,459

463

Decrease (increase) in trade receivables

124,324

146,968

Decrease (increase) in inventories

△ △2,083

△

3,860

Increase (decrease) in accrued consumption taxes

△

△

△3,099

△2,889

Increase (decrease) in accounts payable - other

66,033

67,173

Other, net

△30,324

103,541

△

Subtotal

283,141

465,574

△

Interest and dividends received

48

55

Interest paid

－

130

Income taxes paid

167,599

215,553

△

△115,590

△249,945

Net cash provided by (used in) operating activities

Cash flows from investing activities

Purchase of property, plant and equipment

3,909

1,863

Purchase of intangible assets

△3,566

△4,444

Payments of leasehold and guarantee deposits

△

64

△9,826

Proceeds from refund of leasehold and guarantee

△－

△

60

deposits

Other, net

6

6

Net cash provided by (used in) investing activities

7,546

16,080

△

△

△

△

Cash flows from financing activities

Dividends paid

113,319

202,699

△113,319

△202,699

Net cash provided by (used in) financing activities

Net increase (decrease) in cash and cash equivalents

△

5,276

△

31,165

△

Cash and cash equivalents at beginning of period

3,019,657

3,554,199

Cash and cash equivalents at end of period

3,014,381

3,585,365

5