Inter Action : Consolidated Financial Results for the First Half of the Fiscal Year Ending May 31, 2022 Japanese GAAP

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.

January 12, 2022

	Consolidated Financial Results
for the First Half of the Fiscal Year Ending May 31, 2022
Listed company:	INTER ACTION Corporation
Listed stock exchange: Tokyo
Securities code:	7725
URL:	https://www.inter-action.co.jp/
Representative:	Nobuo Kiji, CEO & President
Contact:	Kaori Kawaguchi, Chief, Business Planning Team
Telephone number:	[phone]

Submission of quarterly report: January 13, 2022

Dividend payment commencement date: -

Preparation of explanatory materials for quarterly financial results: Yes

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

(Amounts of less than one million yen are truncated)

1. Consolidated Financial Results for the Cumulative First Half of the Fiscal Year Ending May 31, 2022 (June 1, 2021 to November 30, 2021)

(1) Consolidated operating results (Cumulative)			(% figures show year-on-year change)
			Net sales			Operating income		Ordinary income	Profit attributable to
						owners of parent
		Millions of yen		%	Millions of yen		%		Millions of yen		%	Millions of yen		%
	Six months ended	2,999		(11.2)	594		(32.3)	611		(30.7)	386		(34.1)
	November 30, 2021
	Six months ended	3,379		(11.7)	877		(4.1)	882		(3.8)	586		(3.2)
	November 30, 2020
	(Note) Comprehensive income: Six months ended November 30, 2021: ¥386 million / -35.1%
			Six months ended November 30, 2020: ¥595 million / -0.0%
							Profit per share			Profit per share-diluted
										Yen						Yen
	Six months ended November 30, 2021						35.19						―
	Six months ended November 30, 2020						53.50						―
(2) Consolidated financial position
			Total assets		Net assets		Shareholders' equity ratio
						Millions of yen			Millions of yen				%
	As of November 30, 2021				11,300				9,248				81.8
	As of May 31, 2021						11,564				9,038				78.2

(Reference) Shareholders' equity: As of November 30, 2021: ¥9,248 million As of May 31, 2021: ¥9,038 million

2. Dividends

				Annual dividends
		First quarter-end	Second quarter-end		Third quarter-end	Fiscal year-end	Total
		Yen	Yen		Yen	Yen	Yen
Fiscal year ended May 31, 2021		−	0.00			−	20.00		20.00
Fiscal year ending May 31, 2022		−	0.00
Fiscal year ending May 31, 2022						−	20.00		20.00
(Forecast)
(Note) Amendment to forecasts of dividends recently announced: None

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

(% figures show year-on-year change for the full year and quarter)

	Net sales		Operating income	Ordinary income	Profit attributable to	Profit per share
		owners of parent
	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	108.20

(Note) 1. Amendment to forecasts of dividends recently announced: None

2. 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 six months ended November 30, 2021 (changes in specified subsidiaries affecting the scope of consolidation): None

New: -

(Company name:

) Excluded: -

(Company name:

)

1. Application of special accounting for preparing quarterly consolidated financial statements: None
2. Changes in accounting policies and estimates, and retrospective restatements
3. 1. Changes in accounting policies in accordance with revision of accounting standards: Yes
   2. Changes in accounting policies other than item (i) above: None
   3. Changes in accounting estimates: None
   4. Retrospective restatements: None

(Note) For details, refer to "(4) Note regarding the quarterly consolidated financial statements (Changes in accounting policies)" under "2. Quarterly Consolidated Financial Statements and Notes" (page 11) of the Attached Materials.

1. Number of shares issued (common stock)
2. 1. Number of shares outstanding at end of period (including treasury shares)

As of November 30, 2021	11,510,200 shares
As of May 31, 2021	11,510,200 shares

(ii) Number of treasury shares at end of period

As of November 30, 2021	508,864 shares
As of May 31, 2021	514,513 shares

(iii) Average number of shares during period

For the six months ended November 30, 2021	10,978,059 shares
For the six months ended November 30, 2020	10,957,609 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.

• Quarterly 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. Consequently, actual results may differ from the forecasts due to a variety of future factors. For details of the above forecasts, refer to"(3) Explanation of forward-looking information including consolidated earnings forecasts" under "1. Qualitative Information on Quarterly Results" (page 5) of the Attached Materials.

[Attached Materials]

Index

1. Qualitative Information on Quarterly Results ………………………………………………………………………………	2
(1) Explanation of operating results …………………………………………………………………………………………	2
(2) Explanation of financial position …………………………………………………………………………………………	4
(3) Explanation of forward-looking information including consolidated earnings forecasts…………………………………	5
2. Quarterly Consolidated Financial Statements and Notes ……………………………………………………………………	6
(1) Quarterly consolidated balance sheets ……………………………………………………………………………………	6
(2) Quarterly consolidated statements of income and consolidated statements of comprehensive income …………………	8
(Quarterly consolidated statements of income)
June 1, 2021 - November 30, 2021 ………………………………………………………………………………	8
(Quarterly consolidated statements of comprehensive income)
June 1, 2021 - November 30, 2021 ………………………………………………………………………………	9
(3) Consolidated statement of cash flows ……………………………………………………………………………………	10
(4) Note regarding the quarterly consolidated financial statements …………………………………………………………	11
(Notes on premise of going concern) ……………………………………………………………………………………	11
(Notes on significant changes in the amount of shareholders' equity) …………………………………………………	11
(Changes in accounting policies) ………………………………………………………………………………………	11
(Additional information) ………………………………………………………………………………………………	11
(Segment information)…………………………………………………………………………………………………	13
(Revenue recognition-related information)………………………………………………………………………………	14
3. Supplementary Explanation of Consolidated Financial Results	15
for the Second Quarter of the Fiscal Year Ending May 31, 2022 ……………………………………………………………
(1) Status of orders ……………………………………………………………………………………………………………	15

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