ENECHANGE : Consolidated Financial Results for the Second Quarter Ended June 30, 2021 (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.

August 13, 2021

Consolidated Financial Results

for the Second Quarter Ended June 30, 2021

(Under Japanese GAAP)

Company name:	ENECHANGE Ltd.
Listing:	Tokyo Stock Exchange
Securities code:	4169
URL:	https://enechange.co.jp/
Representative:	Yohei Kiguchi, Representative Director and CEO
	Ippei Arita, Representative Director and COO
Inquiries:	Takuya Sugimoto, Executive Officer / CFO
TEL:	[phone]

Scheduled date to file Quarterly Report:	August 13, 2021
Start of dividend payment:	-
Preparation of supplementary material on financial results:	Yes
Holding of financial results briefing:	Yes

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

1. Consolidated financial results for the Second Quarter ended June 30, 2021 (from January 1, 2021 to June 30, 2021)

(1) Consolidated operating results (cumulative)

(Percentages indicate changes from the previous corresponding period.)

	Net sales		Operating profit		Ordinary profit		Profit attributable to
				owners of parent
Three months ended	Millions of		%	Millions of		%	Millions of		%	Millions of		%
yen		yen		yen		yen
June 30, 2021	1,386		-	59		-	79		-	16		-
June 30, 2020	-		-	-		-	-		-	-		-

Note: Comprehensive income	For the Second Quarter ended June 30, 2021:	JPY5 million	[-%]
		For the Second Quarter ended June 30, 2020:	JPY- million	[-%]
	Basic earnings	Diluted
	earnings per
	per share
	share
Second Quarter ended		Yen	Yen
June 30, 2021		1.34	1.04
June 30, 2020		-	-

Notes: 1. As the Company had not prepared quarterly consolidated financial statements for the first six months of the fiscal year ended December 31, 2020, figures for the first six months of the fiscal year ended December 31, 2020 and percentage changes from the previous corresponding period, as well as percentage changes from the previous corresponding period for the first six months of the fiscal year ending December 31, 2021, are not presented.

1. 2. The Company conducted a stock split of common shares at a ratio of 3-for-1 on September 17, 2020, and a stock split of common shares at a ratio of 2-for-1 on April 1, 2021. Basic earnings per share and diluted earnings per share are calculated on the assumption that the said stock splits had been conducted at the beginning of the previous fiscal year.

2. Consolidated financial position

	Total assets	Net assets	Equity-to-asset ratio
As of	Millions of yen	Millions of yen	%
June 30, 2021	2,562	1,004	38.8
December 31, 2020	1,967	852	42.6

Reference: Equity As of June 30, 2021:	JPY 995 million
As of December 31,	2020: JPY 838 million

2. Cash dividends

			Annual dividends
	First	Second	Third	Fiscal year-end	Total
	quarter-end	quarter-end	quarter-end
Fiscal year ended	Yen	Yen	Yen	Yen	Yen
-	0.00	-	0.00	0.00
December 31, 2020
Fiscal year ending	-	0.00
December 31, 2021
Fiscal year ending	-	-	-	-	-
December 31, 2021 (Forecast)

Notes: 1.Revisions from dividend forecast most recently announced: None

2. The Company's Articles of Incorporation stipulate that the record dates for dividend fall on the last day of the second quarter and the last day of the fiscal year. At present, the forecast for dividends with these record dates has yet to be determined.

3. Consolidated earnings forecasts for the fiscal year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)

(Percentages indicate year-on-year changes.)

									Profit attributable	Basic
	Net sales		Operating profit	Ordinary profit		to owners of		earnings per
									parent		share
	Millions of		%	Millions of	%	Millions of		%	Millions of		%	Yen
	yen		yen	yen		yen
Fiscal year ending
2,600		51.8	-	-	-		-	-		-	-
December 31,
2021

Notes: 1. Revisions from earnings forecast most recently announced: None

2.The Group's management policy is to create shareholder value by maximizing free cash flows over the long term, with an emphasis on sales growth, a source of free cash flows, in the medium term. Based on this management policy, in the fiscal year ending December 31, 2021, the Group aims to achieve a year-on-year increase in net sales of 30% or more and plans to carry out growth investments with the aim of maintaining a high growth rate in following fiscal years. Operating profit, Ordinary profit, and Profit attributable to owners of parent are expected to be positive, but we have decided not to disclose specific forecast figures in order to make investment decisions in a flexible and expeditious manner.

* Notes

1. Changes in specified subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Application of special accounting for preparing quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates, and restatement
4. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: None
   2. Changes in accounting policies due to other reasons: None

(iii)Changes in accounting estimates: None

(iv)Restatement: None

(4) Number of issued shares (common shares)

(i) Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2021	13,492,984 shares
As of December 31, 2020	11,562,952 shares

(ii) Number of treasury shares at the end of the period

As of June 30 2021	43
As of December 31, 2020	-

(iii)Average number of shares outstanding during the period

Three months ended June 30, 2021	12,399,222 shares
Three months ended June 30, 2020	-

Notes: 1. As the Company had not prepared quarterly consolidated financial statements for the first six months of the fiscal year ended December 31, 2020, the average number of shares outstanding during that period is not presented.

2. The Company conducted a stock split of common shares at a ratio of 3-for-1 on September 17, 2020, and a stock split of common shares at the ratio of 2-for-1 on April 1, 2021. The "Total number of issued shares at the end of the period," the "Number of treasury shares at the end of the period" and the "Average number of shares outstanding during the period" are calculated on the assumption that the said stock splits had been conducted at the beginning of the previous fiscal year.

* These Consolidated Financial Results reports are exempt from quarterly review procedures by certified public accountants or an audit corporation.

• Proper use of earnings forecasts, and other special matters:
  Forward-looking statements, including the consolidated forecasts stated in these materials, are based on information currently available to the Company and certain assumptions deemed reasonable. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Actual business and other results may differ substantially due to various factors.

		ENECHANGE Ltd. (4169)
Consolidated financial statements and significant notes
(1) Consolidated balance sheet
		(Thousands of yen)
	As of December 31, 2020	As of June 30, 2021
Assets
Current assets
Cash and deposits	1,334,449	1,675,569
Accounts receivable - trade	254,241	304,490
Other	38,268	36,842
Allowance for doubtful accounts	(503)	－
Total current assets	1,626,457	2,016,901
Non-current assets
Property, plant and equipment	27,328	23,380
Intangible assets
Software	108,826	116,438
Other	11,843	31,355
Total intangible assets	120,669	147,794
Investments and other assets
Investment securities	176,557	353,686
Other	16,182	21,185
Total investments and other assets	192,739	374,871
Total non-current assets	340,737	546,046
Total assets	1,967,194	2,562,948
Liabilities
Current liabilities
Accounts payable - trade	7,403	12,672
Short-term borrowings	9,900	9,900
Accounts payable - other	140,229	174,463
Income taxes payable	14,967	75,771
Provision for sales promotion expenses	62,981	406,834
Other	128,867	128,702
Total current liabilities	364,350	808,344
Non-current liabilities
Long-term borrowings	750,000	750,000
Other	380	416
Total non-current liabilities	750,380	750,416
Total liabilities	1,114,730	1,558,761

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		ENECHANGE Ltd. (4169)
		(Thousands of yen)
	As of December 31, 2020	As of June 30, 2021
Net assets
Shareholders' equity
Share capital	906,802	1,048,337
Capital surplus	906,792	916,504
Retained earnings	(973,654)	(956,989)
Treasury shares	－	△108
Total shareholders' equity	839,939	1,007,744
Accumulated other comprehensive income
Valuation difference on available-for-sale	－	△14,518
securities
Foreign currency translation adjustment	(1,725)	1,865
Total accumulated other comprehensive income	(1,725)	(12,653)
Share acquisition rights	14,250	9,096
Total net assets	852,464	1,004,187
Total liabilities and net assets	1,967,194	2,562,948

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