Linical : Summary of Consolidated Financial Results for the Three Months Ended June 30, 2021 (Japanese GAAP)

[REFERENCE TRANSLATION]

Please note that this translation is to be used solely as reference and the financial statements in this material are unaudited. In case of any discrepancy between this translation and the Japanese original, the latter shall prevail.

This translation is subject to change without notice. Linical Co., Ltd. shall accept no responsibility or liability for damage or loss caused by any error, inaccuracy, misunderstanding, or changes with regard to this translation.

	Summary of Consolidated Financial Results
	for the Three Months Ended June 30, 2021
	(Japanese GAAP)
	August 12, 2021
Company name	：Linical Co., Ltd.
Stock Listing	：Tokyo Stock Exchange
Code No.	：2183
URL	：https://www.linical.co.jp/
Representative	：Kazuhiro Hatano, President & Chief Executive Officer
Contact	：Akihiro Takahashi, Executive Vice President, Chief Financial Officer

Scheduled date of filing of quarterly report

: August 13, 2021

Scheduled date of start of dividend payment

: －

Preparation of supplementary materials for the quarterly

: No

financial statements

Holding of quarterly financial results meeting

: No

（All amounts are rounded down to the nearest million yen）

1．Consolidated Financial Results for the Three Months Ended June 30, 2021（April 1, 2021 to June 30, 2021）

(1)Consolidated Financial Results (cumulative)

（% figures show year-on-year change）

Net sales

Operating income

Ordinary income

Profit attributable to

owners of parent

Three Months Ended

(¥ million) change(％)

(¥ million)

change(％)

(¥ million)

change(％)

(¥ million)

change(％)

June 30, 2021

2,784

14.9

145

－

140

－

67

－

June 30, 2020

2,424

△9.6

△150

－

△158

－

△199

－

（Note） Comprehensive income

Three Months Ended June30, 2021:

¥85million (－%)

Three Months Ended June30, 2020:

¥△228 million (－%)

Net income per share

Diluted net income

per share

Three Months Ended

(¥)

(¥)

June 30, 2021

3.00

－

June 30, 2020

△8.83

－

(2)Consolidated Financial Position

Total assets

Net assets

Shareholders'

Net asset per

equity ratio

share

(¥ million)

(¥ million)

(％)

(¥)

As of June 30, 2021

14,579

5,469

37.5

242.17

As of March 31, 2021

15,280

5,712

37.4

252.92

（Reference）Shareholder's equity:	As of June	30, 2021:	¥ 5,469million
	As of March	31, 2021:	¥ 5,712million

2．Dividends

			Annual dividends per share (¥)
		1st Quarter End	2nd Quarter End	3rd Quarter End	Fiscal	Total
		Year End
Year Ended March 31, 2021		－	0.00	－	14.00	14.00
Year Ending March 31, 2022		－
Year Ending March 31,			0.00	－	14.00	14.00
2022(Forecast)

(Note）Change in the dividend forecast from the most recent announcement: No

3．Forecast of Consolidated Financial Result for the Year Ending March 31, 2022

(April 1, 2021 to March 31, 2022)

（% figures show year-on-year change）

	Net sales		Operating income
	(¥ million)	％	(¥ million)	％
Full year	10,700	4.1	683	50.6

The forecast of Ordinary income and Profit attributable to owners of parent are undetermined since there are many uncertain factors such as exchange rate fluctuations.

(Note）Change in forecasts of consolidated financial results from the most recent announcement: No

※ Notes		subsidiaries during the	period(changes in specified
(1)Changes in significant	：No
subsidiaries that caused changes in scope of consolidation):
New:	-	(Company Name)	-
Exclusion:	-	(Company Name)	-

(2)Adoption of accounting methods specific to the preparation of quarterly consolidated financial statements

(3)Changes in accounting policies, accounting estimates and restatement of corrections

1)Changes in accounting policies resulting from the revision of the accounting standards and other regulations

2)Changes in accounting policies other than 1) 3)Changes in accounting estimates 4)Restatement of corrections

(4)Number of issued shares (Common share)

(a)Number of issued shares at the end of the period (including treasury shares)

：No

：Yes

：No

：No

：No

As of	June 30, 2021
As of	March 31, 2021

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

As of	June 30, 2021
As of	March 31, 2021

1. Average number of shares during the period Three Months Ended June 30, 2021 Three Months Ended June 30, 2020

：24,740,000 shares

：24,740,000 shares

• 2,153,564 shares
• 2,153,564 shares

：22,586,436 shares

：22,586,527 shares

• This release is outside the scope of the external auditor's quarterly review procedure.
• Explanation on appropriate use of forecast and other special items

This material contains business forecast and other forward-looking statements which are based on available information and certain assumptions that are considered reasonable at the time of preparation. Various factors may cause actual results to be materially different from those expressed in these forward- looking statements.

Consolidated Balance Sheets

						(Thousands of yen)
				As of March 31, 2021		As of June 30, 2021
	Assets
	Current assets
	Cash and deposits	5,084,201	4,938,134
	Accounts receivable - trade	2,982,090		－
	Accounts receivable - trade and			－		2,577,871
	contract assets
	Prepaid expenses	153,407	152,397
	Advances paid			1,183,907		1,198,532
	Other	355,957	362,246
	Allowance for doubtful accounts			△36,850		△45,740
	Total current assets		9,722,712	9,183,441
	Non-current assets
	Property, plant and equipment	701,164	676,195
	Intangible assets
	Goodwill	3,463,418	3,347,732
	Other		188,469	174,960
	Total intangible assets		3,651,888	3,522,693
	Investments and other assets
	Investment securities			294,423		306,001
	Long-term prepaid expenses	4,368	7,195
	Guarantee deposits	449,803	444,017
	Deferred tax assets			456,286		439,613
	Total investments and other assets		1,204,882	1,196,827
	Total non-current assets		5,557,935	5,395,716
	Total assets		15,280,647	14,579,158

Consolidated Balance Sheets

						(Thousands of yen)
				As of March 31, 2021		As of June 30, 2021
	Liabilities
	Current liabilities
	Short-term borrowings	610,799	600,000
	Current portion of long-term borrowings	539,976	539,976
	Accounts payable - other			665,588		586,644
	Accrued expenses	455,003	328,418
	Income taxes payable	203,409	185,293
	Accrued consumption taxes			38,793		104,038
	Advances received	1,909,343	1,713,671
	Deposits received	635,639	721,231
	Provision for bonuses			177,114		90,512
	Other	98,155	153,589
	Total current liabilities	5,333,824	5,023,375
	Non-current liabilities
	Long-term borrowings	3,073,542	2,938,548
	Lease obligations	468,192	453,358
	Retirement benefit liability			645,066		656,771
	Other	47,400	37,412
	Total non-current liabilities		4,234,202	4,086,091
	Total liabilities		9,568,027	9,109,467
	Net assets
	Shareholders' equity
	Share capital	214,043	214,043
	Retained earnings	6,142,987	5,882,149
	Treasury shares			△657,461		△657,461
	Total shareholders' equity		5,699,568	5,438,730
	Accumulated other comprehensive income
	Valuation difference on available-for-	11,084	26,487
	sale securities
	Foreign currency translation adjustment			△1,451	508
	Remeasurements of defined benefit plans			3,418		3,964
	Total accumulated other comprehensive			13,052		30,960
	income
	Total net assets		5,712,620	5,469,691
	Total liabilities and net assets		15,280,647	14,579,158

Consolidated statements of income (cumulative)

				(Thousands of yen)
		Three months ended	Three months ended
		June 30, 2020	June 30, 2021
Net sales	2,424,048		2,784,738
Cost of sales	1,951,386		2,072,164
Gross profit	472,662		712,574
Selling, general and administrative expenses	623,386		566,843
Operating profit (loss)		△150,724	145,730
Non-operating income
Interest income	3,263		129
Gain on valuation of investment		7,166		8,997
securities
Total non-operating income	10,430		9,126
Non-operating expenses
Interest expenses	3,775		4,034
Foreign exchange losses	12,818		10,356
Other	1,904		7
Total non-operating expenses	18,498		14,398
Ordinary profit (loss)		△158,792	140,458
Extraordinary losses
Arbitration related expenses	45,321		46,152
Total extraordinary losses	45,321		46,152
Profit (loss) before income taxes		△204,114	94,305
Income taxes - current	5,987		33,879
Income taxes - deferred		△10,685	△7,225
Total income taxes		△4,697	26,654
Profit (loss)		△199,416	67,651
Profit (loss) attributable to owners of		△199,416		67,651
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