Inter Action : 【Delayed】Consolidated Financial Results for the Fiscal Year Ended May 31, 2021 Japanese GAAP

(% figures show year-on-yearchange)

Member of the Financial Accounting Standards Foundation

Disclaimer: This is a Japanese-English translation of the summary of financial statements of the Company produced for your convenience. Since no auditor audited this report, officially only the Japanese version is assumed to be the summary of financial statements of the Company. This summary does not constitute any guarantee and the Company will not compensate any losses and/or damage stemming from actions taken based on these statements. Should there be any discrepancy between the Japanese and English versions, the Japanese version is assumed to be correct.

July 12, 2021

Consolidated Financial Results for the Fiscal Year Ended May 31, 2021

Listed company:	INTER ACTION Corporation
Listed stock exchange: Tokyo
Securities code:	7725
URL:	http://www.inter-action.co.jp
Representative:	Nobuo Kiji, CEO & President
Contact:	Kaori Kawaguchi, Chief, Business Planning Team
Telephone number:	[phone]

Planned Date of General Shareholders' Meeting: August 25, 2021

Planned Commencement Date of Dividend Payments: August 26, 2021

Planned Filing Date of Securities Report: August 26, 2021

Preparation of explanatory materials for financial results: Yes

Holding of a briefing on financial results: Yes (For Institutional Investors, Analysts)

(Amounts of less than one million yen are truncated)

1. Consolidated Financial Results for the Fiscal Year Ended May 31, 2021 (June 1, 2020 to May 31, 2021)

(1) Consolidated operating results

		Net sales			Operating income	Ordinary income	Profit attributable to
					owners of parent
For the fiscal year ended	Millions of yen		%	Millions of yen	%	Millions of yen		%	Millions of yen		%
May 31, 2021	6,627		(6.4)	1,751		12.6		1,748		13.1		1,159		15.4
May 31, 2020	7,083		(11.3)	1,555		(21.4)		1,545		(20.5)		1,004		(27.5)
(Note) Comprehensive income: the fiscal year ended May 31, 2021: ¥1,185 million / 21.1%
		the fiscal year ended May 31, 2020: ¥978 million / (28.2)%
					Profit per share-		Profit to		Ordinary income		Operating
		Profit per share			shareholders'			income to net
				diluted				to assets
							equity					sales
For the fiscal year ended		Yen		Yen			%				%				%
May 31, 2021		105.61			－			13.7			16.2				26.4
May 31, 2020		91.94			－			13.2			15.2				22.0
(Reference) Equity method investment gain (loss): the fiscal year ended May 31, 2021: (¥1 million)
						the fiscal year ended May 31, 2020: (¥2 million)

(2) Consolidated financial position

	Total assets	Net assets	Shareholders' equity ratio	Net assets per share
	Millions of yen	Millions of yen	%	Yen
As of May 31, 2021	11,564	9,038	78.2	821.96
As of May 31, 2020	10,005	7,872	78.7	720.15

(Reference) Shareholders' equity: As of May 31, 2021: ¥9,038 million As of May 31, 2020: ¥7,872 million

(% figures show year-on-yearchange)

(3) Consolidated cash flows

	From Operating	From Investing	From Financing	Cash and Cash
	Equivalents at End of
	Activities	Activities	Activities
	Fiscal Year
For the fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
May 31, 2021	2,369	(86)	28	7,211
May 31, 2020	1,164	(276)	(758)	4,873

2. Dividends

		Annual dividends						Ratio of Total
						Total Amount	Dividend		Amount of
	First	Second	Third	Fiscal			of Cash		Dividends to
			Payout Ratio
	quarter-	quarter-	quarter-	year-	Total		Dividends		Shareholders'
		(consolidated)
	end	end	end	end			(annual)		Equity
						(consolidated)
For the fiscal year ended	Yen	Yen	Yen	Yen	Yen		Millions of yen	%	%
May 31, 2020	－	0.00	－	18.00	18.00	202	19.6	2.6
May 31, 2021	－	0.00	－	20.00	20.00	225	18.9	2.6
For the fiscal year ending
May 31, 2022	－	0.00	－	20.00	20.00			18.5
(Forecast)

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending May 31, 2022 (June 1, 2021 to May 31, 2022)

	Net sales		Operating income	Ordinary income	Profit attributable to	Profit per
		owners of parent	share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	6,803	2.6	1,871	6.8	1,806	3.3	1,189	2.6	108.14

(Note) The Company has implemented an ESOP and Directors' stock compensation plan both in the form of stock benefit trusts. Accordingly, profit per share is calculated based on the average number of shares during the fiscal year, excluding the number of treasury shares, which includes Inter Action stock held by the stock benefit ESOP trust accounts and Directors' compensation stock benefit trust accounts.

• Notes

1. Change in significant subsidiaries during the period (changes in specified subsidiaries affecting the scope of

consolidation): None
New: - (Company name:	) Excluded: - (Company name:	)

1. Changes in accounting policies and estimates, and retrospective restatements
2. 1. Changes in accounting policies in accordance with revision of accounting standards: None
   2. Changes in accounting policies other than item (i) above: None
   3. Changes in accounting estimates: None
   4. Retrospective restatements: None
3. Number of shares issued (common stock)
4. 1. Number of shares outstanding at end of period (including treasury shares)

As of May 31, 2021	11,510,200 shares
As of May 31, 2020	11,510,200 shares

(ii) Number of treasury shares at end of period

As of May 31, 2021	514,513 shares
As of May 31, 2020	577,783 shares

(iii) Average number of shares during period

Fiscal year ended May 31, 2021	10,976,608 shares
Fiscal year ended May 31, 2020	10,927,129 shares

(Note) The Company has implemented an ESOP and Directors' stock compensation plan, both in the form of stock benefit trusts. Accordingly, treasury shares, as stated, include Inter Action stock held by the stock benefit ESOP trust accounts and Directors' compensation stock benefit trust accounts.

(Reference) Outline of non-consolidated business results

Non-consolidated Financial Results for the Fiscal Year Ended May 31, 2021 (June 1, 2020 to May 31, 2021)

(1) Non-consolidated financial results				(% figures show year-on-year change)
		Net sales		Operating income	Ordinary income	Profit
	For the fiscal year ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
	May 31, 2021	4,574	(5.3)	1,779	23.3	1,818	10.3	1,263	12.6
	May 31, 2020	4,832	(7.7)	1,443	(18.4)	1,648	(17.0)	1.121	(25.3)
		Profit per share	Profit per share-diluted
	For the fiscal year ended		Yen		Yen
	May 31, 2021		115.08		－
	May 31, 2020		102.63		－
(2) Non-consolidated financial position
		Total assets	Net assets		Shareholders' equity ratio	Net assets per share
		Millions of yen	Millions of yen			%		Yen
	As of May 31, 2021		10,402	8,961			86.1		815.00
	As of May 31, 2020		8,956	7,718			86.2		706.02

(Reference) Shareholders' equity: As of May 31, 2021: ¥8,961 million As of May 31, 2020: ¥7,718 million

• The consolidated financial results are not subject to auditing by a certified public accountant or an audit firm.
• Proper use of earnings forecasts, and other special matters
  The above forecasts of consolidated financial results are based on certain assumptions on economic situation, market trends, etc. deemed to be reasonable when the forecasts were made. Consequently, actual results may differ from the forecasts due to a variety of future factors. For details of the above forecasts, refer to "(4) Forecasts" under "1.
  Overview of Operating Results" (page 6) of the Attached Materials.

[Attached Materials]

Index

1. Overview of Operating Results……………………………………………………………………………	2
(1) Overview of operating results for the fiscal year under review ………………………………………	2
(2) Overview of financial position for the fiscal year under review ………………………………………	5
(3) Overview of cash flows for the fiscal year under review ………………………………………………	5
(4) Forecasts ………………………………………………………………………………………………	6
2. Basic Policy on the Selection of Accounting Standards …………………………………………………	7
3. Consolidated Financial Statements and Notes ……………………………………………………………	8
(1) Consolidated balance sheets ……………………………………………………………………………	8
(2) Consolidated statements of income and consolidated statements of comprehensive income …………	10
(Consolidated statements of income) ………………………………………………………………	10
(Consolidated statements of comprehensive income) ………………………………………………	11
(3) Consolidated statement of changes in shareholders' equity ……………………………………………	12
(4) Consolidated statement of cash flows …………………………………………………………………	14
(5) Note regarding the consolidated financial statements …………………………………………………	15
(Notes on premise of going concern) …………………………………………………………………	15
(Additional information) ………………………………………………………………………………	15
(Segment information) ………………………………………………………………………………	15
(Information per share) ………………………………………………………………………………	17
(Significant subsequent events) ………………………………………………………………………	17
4. Supplementary explanation of consolidated financial results for the fiscal year ended May 31, 2021 …	18
(1) Status of production, orders and sales …………………………………………………………………	18

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