[Summary]Consolidated Financial Results for the Nine Months Ended September 30, 2021

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.

Consolidated Financial Results

for the Nine Months Ended September 30, 2021

[Japanese GAAP]

Company name: MarkLines Co., Ltd.	November 05, 2021
Stock exchange listing: Tokyo
Code number: 3901
URL: https://www.marklines.com
Representative: Makoto Sakai	President, CEO
Contact: Kenichi Sakai	Director, General Manager, Administration Dept.

Phone: [phone]

Scheduled date of filing quarterly securities report: November 10, 2021

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. Consolidated Financial Results for the Nine Months Ended September 30, 2021 (January 01, 2021 to September 30, 2021)

(1) Consolidated Operating Results					(% indicates changes from the previous corresponding period.)
		Net sales		Operating profit	Ordinary profit		Profit attributable to
				owners of parent
Nine months ended	Million yen	%		Million yen	%	Million yen	%		Million yen		%
September 30, 2021		2,538	29.2		903	29.4	896	28.8			617		44.6
September 30, 2020		1,964	9.5		698	6.7	696	6.1			426		(6.1)
(Note) Comprehensive income:	Nine months ended September 30, 2021:	¥		667 million	[	50.8%]
		Nine months ended September 30, 2020:	¥		442 million	[	(1.5) %]
		Basic earnings	Diluted earnings per
		per share		share
Nine months ended			Yen			Yen
September 30, 2021			46.76			46.66
September 30, 2020			32.38			32.28
(2) Consolidated Financial Position
		Total assets		Net assets	Capital adequacy ratio
As of			Million yen			Million yen			%
September 30, 2021			4,623			3,317			71.7
December 31, 2020			4,024			2,920			72.6
(Reference) Equity: As of	September 30, 2021:	¥	3,317 million
As of	December 31, 2020:	¥	2,920 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 December 31, 2020		-		0.00	-		21.00	21.00
Fiscal year ending December 31, 2021		-		0.00	-
Fiscal year ending December 31, 2021							23.00	23.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	Yes
(Note) Breakdown of the 3rd quarter dividend for the fiscal year ending December 31, 2021 :
Commemorative dividend	-	yen
Special dividend	-	yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2021(January 01, 2021 to December 31, 2021) (% indicates changes from the previous corresponding period.)

			Net sales		Operating profit	Ordinary profit	Profit attributable to	Basic earnings
				owners of parent	per share
			Million yen		%	Million yen	%	Million yen		%	Million yen	%	Yen
Full year			3,500		31.4	1,250	30.1	1,230		28.5	850	34.9	64.40
(Note) Revision to the financial results forecast announced most recently:	Yes
* Notes:
(1) Changes in significant subsidiaries during the nine months ended September 30, 2021
(changes in specified subsidiaries resulting in changes in scope of consolidation):	Yes
New	1	(Company name:									)
Exclusion:	1	(Company name:									)
(2) Accounting policies adopted specially for the preparation of quarterly 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: No
   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):

September 30, 2021:	13,209,200	shares
December 31, 2020:	13,189,200	shares
2) Total number of treasury shares at the end of the period:
September 30, 2021:	397	shares
December 31, 2020:	297	shares

3) Average number of shares during the period:
Nine months ended September 30, 2021:	13,198,413	shares
Nine months ended September 30, 2020:	13,184,284	shares

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

				(Thousand yen)
			As of December 31,2020	As of September 30,2021
Assets
	Current assets
		Cash and deposits	3,301,979	3,613,045
		Notes receivable - trade	-	2,710
		Accounts receivable - trade	131,811	198,616
		Merchandise	9,956	5,759
		Work in process	-	14,424
		Prepaid expenses	22,998	28,069
		Other	45,854	42,451
		Allowance for doubtful accounts	(1,450)	(1,922)
		Total current assets	3,511,150	3,903,156
	Non-current assets
		Property, plant and equipment
		Buildings and structures	54,938	26,424
		Accumulated depreciation	(12,353)	(5,592)
		Buildings and structures, net	42,585	20,832
		Land	5,634	-
		Other	39,173	46,003
		Accumulated depreciation	(27,632)	(31,581)
		Other, net	11,540	14,422
		Total property, plant and equipment	59,760	35,255
		Intangible assets
		Software	64,447	41,167
		Total intangible assets	64,447	41,167
		Investments and other assets
		Investment securities	194,307	445,398
		Distressed receivables	1,067	645
		Long-term prepaid expenses	3,383	2,168
		Long-term time deposits	47,430	51,780
		Leasehold deposits	99,239	98,922
		Deferred tax assets	45,153	45,245
		Allowance for doubtful accounts	(1,067)	(645)
		Total investments and other assets	389,513	643,515
		Total non-current assets	513,721	719,938
	Total assets	4,024,872	4,623,095

				(Thousand yen)
			As of December 31,2020	As of September 30,2021
Liabilities
	Current liabilities
		Accounts payable - trade	42,707	50,252
		Accounts payable - other	8,230	5,785
		Accrued expenses	43,812	36,467
		Income taxes payable	169,853	136,103
		Accrued consumption taxes	38,446	49,083
		Advances received	764,267	960,430
		Deposits received	19,764	6,052
		Provision for bonuses	12,671	56,367
		Other	-	689
		Total current liabilities	1,099,752	1,301,232
	Non-current liabilities
		Retirement benefit liability	4,435	4,852
		Total non-current liabilities	4,435	4,852
	Total liabilities	1,104,187	1,306,085
Net assets
	Shareholders' equity
		Share capital	368,751	370,751
		Capital surplus	286,558	288,558
		Retained earnings	2,306,972	2,647,365
		Treasury shares	(344)	(643)
		Total shareholders' equity	2,961,938	3,306,031
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	(38,003)	3,082
		securities
		Foreign currency translation adjustment	(3,250)	7,895
		Total accumulated other comprehensive income	(41,254)	10,977
	Total net assets	2,920,684	3,317,009
Total liabilities and net assets	4,024,872	4,623,095

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the nine months)

			(Thousand yen)
		For the nine months	For the nine months
		ended September 30,2020	ended September 30,2021
Net sales	1,964,997	2,538,635
Cost of sales	664,786	929,690
Gross profit	1,300,211	1,608,944
Selling, general and administrative expenses
	Promotion expenses	5,982	6,151
	Sales commission	1,260	876
	Advertising expenses	7,467	7,473
	Remuneration for directors (and other officers)	43,292	42,707
	Salaries and allowances	263,036	326,822
	Provision for bonuses	25,979	33,800
	Retirement benefit expenses	5,858	5,704
	Legal welfare expenses	43,069	56,819
	Depreciation	11,830	9,649
	Provision of allowance for doubtful accounts	2,525	889
	Rent expenses	42,420	50,525
	Other	149,206	163,950
	Total selling, general and administrative expenses	601,930	705,369
Operating profit	698,281	903,575
Non-operating income
	Interest income	1,370	2,914
	Dividend income	3,199	2,164
	Other	3,051	2,490
	Total non-operating income	7,621	7,569
Non-operating expenses
	Share of loss of entities accounted for using equity	-	13,901
	method
	Foreign exchange losses	9,853	593
	Other	12	63
	Total non-operating expenses	9,865	14,559
Ordinary profit	696,036	896,585
Extraordinary income
	Gain on change in equity	-	8,889
	Gain on sales of non-current assets	-	11,043
	Total extraordinary income	-	19,932
Extraordinary losses
	Loss on valuation of investment securities	87,068	33,934
	Total extraordinary losses	87,068	33,934
Profit before income taxes	608,968	882,583
Income taxes - current	216,848	285,583
Income taxes - deferred	(34,784)	(18,225)
Total income taxes	182,063	267,357
Profit	426,904	615,226
Profit attributable to non-controlling interests	-	(1,918)
Profit attributable to owners of parent	426,904	617,144