Conexio : [Summary］Non-consolidated Financial Results for the Nine Months Ended Dec 31, 2021

CONEXIO Corporation (9422) Non-consolidated Financial Results for the Nine Months Ended December 31, 2021 [Japanese GAAP]

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Non-consolidated Financial Results

for the Nine Months Ended December 31, 2021[Japanese GAAP]

January 27, 2022

Company name:

CONEXIO Corporation

Stock exchange listing: Tokyo

Code number:

9422

URL:

https://www.conexio.co.jp

Representative:

Hiroshi Suguta

President

Contact:

Shinya Nakada

General Manager, Corporate Planning Department

Phone: [phone]

Scheduled date of filing quarterly securities report: February 09, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: No

(Amounts of less than one million yen are rounded down)

1. Non-consolidated Financial Results for the Nine Months Ended December 31, 2021 (April 01, 2021 to December 31, 2021)

(1) Non-consolidated Operating Results

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit

Nine months ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

December 31, 2021

138,298

5.6

5,358

(33.2)

5,452

(35.1)

3,935

(30.1)

December 31, 2020

130,946

(16.4)

8,019

7.8

8,398

10.2

5,630

9.3

Basic earnings

Diluted earnings per

per share

share

Nine months ended

Yen

Yen

December 31, 2021

87.97

-

December 31, 2020

125.84

-

(2) Non-consolidated Financial Position

Total assets

Net assets

Capital adequacy ratio

As of

Million yen

Million yen

%

December 31, 2021

98,654

51,942

52.7

March 31, 2021

105,315

51,140

48.6

(Reference) Equity:

As of

December 31, 2021:

¥

51,942 million

As of

March 31, 2021:

¥

51,140 million

2. Dividends

Annual dividends

1st

2nd

3rd

Year-end

Total

quarter-end

quarter-end

quarter-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended March 31, 2021

-

30.00

-

35.00

65.00

Fiscal year ending March 31, 2022

-

35.00

-

Fiscal year ending March 31, 2022

35.00

70.00

(Forecast)

(Note) Revision to the forecast for dividends announced most recently:

No

3. Non-consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022(April 01, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

	Net sales		Operating profit	Ordinary profit	Profit		Basic earnings
			per share
	Million yen		%	Million yen	%	Million yen	%	Million yen		%	Yen
Full year	185,000		(2.0)	8,000	(25.1)	8,000	(27.8)	5,700		(24.4)	127.41
(Note) Revision to the financial results forecast announced most recently:	Yes

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CONEXIO Corporation (9422) Non-consolidated Financial Results for the Nine Months Ended December 31, 2021 [Japanese GAAP]

* Notes:
(1) Accounting policies adopted specially for the preparation of quarterly Non-consolidated financial statements:	No

1. Changes in accounting policies, changes in accounting estimates and retrospective restatement
2. 1. Changes in accounting policies due to the revision of accounting standards: Yes
   2. Changes in accounting policies other than 1) above: No
   3. Changes in accounting estimates: No
   4. Retrospective restatement: No
3. Total number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares):

December 31, 2021:	44,737,938	shares
March 31, 2021:	44,737,938	shares
2) Total number of treasury shares at the end of the period:
December 31, 2021:	194	shares
March 31, 2021:	153	shares

3) Average number of shares during the period:
Nine months ended December 31, 2021:	44,737,773	shares
Nine months ended December 31, 2020:	44,737,789	shares

• This Financial Results is not subject to audit procedures.
• Explanation of appropriate use of financial forecasts and other special notes
• • Financial forecasts and other forward-looking statements herein are based on information available to the Company and certain assumptions deemed reasonable as at the time of preparing this report. The Company does not guarantee that any forecasts would be met. Actual results may vary significantly from the forecasts due to a wide range of factors.

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CONEXIO Corporation (9422) Non-consolidated Financial Results for the Nine Months Ended December 31, 2021 [Japanese GAAP]

1.Quarterly Non-consolidated Financial Statements

(1) Quarterly Non-consolidated Balance Sheets

				(Million yen)
			As of March 31,2021	As of December 31,2021
Assets
	Current assets
		Cash and deposits	21,550	19,974
		Accounts receivable - trade	29,038	21,526
		Merchandise and finished goods	6,295	5,572
		Accounts receivable - other	27,788	31,134
		Deposits paid	114	127
		Other	1,131	1,171
		Allowance for doubtful accounts	(5)	(6)
		Total current assets	85,914	79,499
	Non-current assets
		Property, plant and equipment	4,014	3,872
		Intangible assets
		Goodwill	1,306	1,222
		The right of career shop management	7,654	7,154
		Other	449	497
		Total intangible assets	9,410	8,874
		Investments and other assets	5,976	6,408
		Total non-current assets	19,401	19,155
	Total assets	105,315	98,654
Liabilities
	Current liabilities
		Accounts payable - trade	14,756	13,430
		Accrued agency commission	6,370	4,811
		Accounts payable - other	14,505	16,231
		Income taxes payable	2,022	401
		Provision for bonuses	4,829	675
		Provision for bonuses for directors (and other	81	4
		officers)
		Other	5,017	5,921
		Total current liabilities	47,583	41,476
	Non-current liabilities
		Provision for bonuses	-	20
		Provision for directors' bonuses	-	8
		Provision for retirement benefits	5,894	3,138
		Asset retirement obligations	595	623
		Other	102	1,444
		Total non-current liabilities	6,591	5,234
	Total liabilities	54,174	46,711

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CONEXIO Corporation (9422) Non-consolidated Financial Results for the Nine Months Ended December 31, 2021 [Japanese GAAP]

				(Million yen)
			As of March 31,2021	As of December 31,2021
Net assets
	Shareholders' equity
		Share capital	2,778	2,778
		Capital surplus	585	585
		Retained earnings	47,774	48,578
		Treasury shares	(0)	(0)
		Total shareholders' equity	51,138	51,941
	Valuation and translation adjustments
		Valuation difference on available-for-sale	2	0
		securities
		Total valuation and translation adjustments	2	0
	Total net assets	51,140	51,942
Total liabilities and net assets	105,315	98,654

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CONEXIO Corporation (9422) Non-consolidated Financial Results for the Nine Months Ended December 31, 2021 [Japanese GAAP]

(2) Quarterly Non-consolidated Statements of Income

			(Million yen)
		For the nine months	For the nine months
		ended December 31,2020	ended December 31,2021
Net sales	130,946	138,298
Cost of sales	93,667	100,049
Gross profit	37,278	38,249
Selling, general and administrative expenses	29,259	32,890
Operating profit	8,019	5,358
Non-operating income
	Interest income	0	0
	Dividend income	0	0
	Support money of store move etc income	90	36
	Reversal of allowance for doubtful accounts	0	3
	Subsidies for employment adjustment	259	-
	Surrender value of insurance policies	-	31
	Other	41	25
	Total non-operating income	392	97
Non-operating expenses
	Interest expenses	0	0
	Loss on cancellation of contracts	5	0
	Loss on investments in investment partnerships	3	-
	Other	3	3
	Total non-operating expenses	12	3
Ordinary profit	8,398	5,452
Extraordinary income
	Gain on sale of non-current assets	24	-
	Compensation for forced relocation	-	332
	Gain on revision of retirement benefit plan	-	280
	Other	0	13
	Total extraordinary income	25	626
Extraordinary losses
	Head office relocation expenses	-	127
	Loss on store closings	19	20
	Loss on sale and retirement of non-current assets	27	9
	Impairment losses	24	25
	Other	1	-
	Total extraordinary losses	73	183
Profit before income taxes	8,350	5,895
Income taxes - current	2,864	2,103
Income taxes - deferred	(143)	(143)
Total income taxes	2,720	1,959
Profit	5,630	3,935

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