MINKABU INFONOID : Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31,2022 (Under Japanese GAAP)

Note: This document has been translated from 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 12, 2021

Consolidated Financial Results

for the First Three Months of the Fiscal Year Ending March 31, 2022

(Under Japanese GAAP)

Company name:	MINKABU THE INFONOID INC.
Listing:	Tokyo Mothers
Securities code:	4436
URL:	https://minkabu.co.jp/
Representative:	Ken Uryu, President and CEO
Inquiries:	Ryutaro Takada, Senior Executive Vice President and CFO
Telephone:	[phone]

Scheduled date to file quarterly securities report:	August 12, 2021
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:	Yes (for institutional investors and analysts)

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

1. Consolidated financial results for the three months ended June 30, 2021 (from April 1, 2021 to June 30, 2021)

(1) Consolidated operating results (cumulative)		(% indicates changes from the previous corresponding period.)
			Net sales		EBITDA		Operating profit	Ordinary profit	Profit attributable to
					owners of parent
Three months ended	Million yen		%	Million yen		%	Million yen	%	Million yen	%	Million yen	%
June	30,	2021	1,127		37.0	270		17.6	111	(4.2)	82	(22.6)	41	(38.2)
June 30, 2020	823		-	230		-	116	-	106	-	67	-

Note: Comprehensive income	For the three months ended June 30, 2021:	¥36 million	[(58.3)%]
			For the three months ended June 30, 2020:	¥86 million	[-%]
		Basic earnings		Diluted earnings
			per share		per share
	Three months ended			Yen	Yen
	June 30, 2021			2.94	2.88
	June 30, 2020			4.92	4.83
	Notes:

1. Since the quarterly consolidated financial statements have been prepared from the end of the third quarter of the fiscal year ended March 31, 2020, the rate of increase/decrease for the end of the first quarter of the fiscal year ended March 31, 2021 is not stated.
2. EBITDA is calculated as 'Operating profit + Depreciation + Amortization of goodwill'

(2) Consolidated financial position

		Total assets	Net assets	Equity ratio	Book value per share
			Million yen	Million yen	%	Yen
	June 30, 2021		9,597	7,502	75.0	483.06
	March 31, 2021		6,989	4,215	56.0	283.42
Reference: Equity
	As of June 30, 2021:		¥7,197 million
	As of March 31, 2021:		¥3,916 million

2. Dividends

		Annual dividends per share
	End of first quarter	End of second		End of third quarter		Fiscal year end		Total
	quarter
	Yen	Yen		Yen		Yen		Yen
Fiscal year ended	-	-	-		18.00	18.00
March 31, 2021
Fiscal year ending	-
March 31, 2022
Fiscal year ending
March 31, 2022		-	-		18.00	18.00
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Earnings Forecast of Consolidated Financial Results for Fiscal Year Ending March 31, 2022 (From April 1, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

											Net income	Net income
	Net sales		EBITDA		Operating profit	Ordinary income	attributable to
			per share
											owners of parent
	Million yen		%	Million yen		%	Million yen	%	Million yen	%	Million yen	%	yen
Full year	5,300		27.4	1,680		31.2	1,000	31.7	900	22.6	700	24.0	49.34

Notes:

1. Revisions to the forecast of financial results most recently announced: None
2. EBITDA is calculated as 'Operating profit + Depreciation + Amortization of goodwill'

Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
   Newly included: - companies (-)
   Excluded: - companies (-)
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes

The details are described in "(3) Notes to Quarterly Consolidated Financial Statements (Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements)" under the "2. Quarterly Consolidated Financial Statements and Principal Notes" section on page 9.

1. Changes in accounting policies, changes in accounting estimates, and restatement
2. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
3. Number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares)

As of June 30, 2021	14,899,800 shares
As of March 31, 2021	13,819,700 shares

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

As of June 30, 2021	23 shares
As of March 31, 2021	- shares

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Three months ended June 30, 2021	14,187,638 shares
Three months ended June 30, 2020	13,747,367 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters:
  The statements regarding forecast of financial results in this report are based on the information that is available to the Company, as well as certain assumptions that are deemed to be reasonable by management, and they are not meant to be a commitment by the Company. Therefore, there might be cases in which actual results differ materially from forecast values due to various factors.
  For notes on using earnings projections and assumptions for premises thereof, please refer to "(3) Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information" under the "1. Qualitative Information on Quarterly Financial Results" section on page 3.
  We plan to hold a financial results briefing for institutional investors and analysts on August 12, 2021. Supplementary materials for financial results will be published on our website on the day of the event.

Table of Contents of Attached Material
1. Qualitative Information on Quarterly Financial Results -------------------------------------------------------	2
(1)	Results of Operations--------------------------------------------------------------------------------------------	2
(2)	Financial Position ------------------------------------------------------------------------------------------------	2
(3)	Forecast of Consolidated Financial Results and Other Forward-Looking Information ----------------	3
2．Quarterly Consolidated Financial Statements and Principal Notes -------------------------------------------	5
(1)	Quarterly Consolidated Balance Sheets-----------------------------------------------------------------------	5
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income ----------------------------	7
	(Quarterly Consolidated Statements of Income) ------------------------------------------------------------	7
	(Quarterly Consolidated Statements of Comprehensive Income)-----------------------------------------	8
(3)	Notes to Quarterly Consolidated Financial Statements-----------------------------------------------------	9
	(Notes to Going Concern Assumption) -----------------------------------------------------------------------	9
	(Notes to Significant Changes in the Amount of Shareholders' Equity) ---------------------------------	9
	(Adoption of Accounting Treatment Specific to Quarterly Consolidated Financial Statements) -----	9
	(Changes in Accounting Policies) -----------------------------------------------------------------------------	9
	(Changes in Accounting Estimates) ---------------------------------------------------------------------------	9
	(Segment Information) ----------------------------------------------------------------------------------------	10

- 1 -

1. Qualitative Information on Quarterly Financial Results

During the first quarter of the current fiscal year, the Company rebranded existing information site for investors "Minna no Kabushiki" integrating with its series of site and launched an asset building media "MINKABU" targeting all asset builders. In addition, the Company expanded the coverage of stock information to include U.S. stocks and released a U.S. stock version of "Kabutan," a stock information dedicated media.

(1) Explanation of Results of Operations

On a consolidated basis, the Company raised 1,127,927 thousand yen in sales (37.0% increase YoY), 111,782 thousand yen in operating profit (4.2% decrease YoY), 82,489 thousand yen in recurring profit (22.6% decrease YoY), and 41,747 thousand yen in net profit attributable to shareholders of the parent company (38.2% decrease YoY), for the first quarter of the current fiscal year. The Company also raised 270,785 thousand yen (17.6% increase YoY) in EBITDA (operating income + depreciation and amortization + amortization of goodwill), which is one of important measurements the Company thinks for its continuous growth.

For temporary inherent expenses, accelerated depreciation of existing facilities associated with the relocation of the new office and fundraising cost for the capital and business alliance with QUICK Corp. and Nikkei Inc., were recorded in general and administrative expenses and non-operating expenses, respectively, which caused temporary pressure on profits. Profits of each reporting segment were, however, maintained or expanded compared with those for the same period of the previous fiscal year.

Performance by business segment is as follows. The Company acquired shares of Robot Fund Co., Ltd., a SaaS-based information vendor specializing in investment trusts and made it a consolidated subsidiary in the first quarter of the previous fiscal year. Since the acquisition of shares was at the end of the first quarter of the previous fiscal year, the income statement of Robot Fund Co., Ltd. has been consolidated since the second quarter of the previous fiscal year.

(Media)

The media business records advertisement revenue from information media of "MINKABU", an asset building information media, "Kabutan", a stock information specialized media, and those the Company operates through business alliances. The media business also records billing services revenue. For the first quarter of the current fiscal year, the total monthly average unique users of media sites the Company operates increased by 250 thousand YoY to 9.7 million, and visitors increased by 2.39 million and to reach 30 million, with asset building media "MINKABU" rebranded from stock information media "Minna no Kabushiki", and the U.S. stock version of "Kabutan" being released.

In advertising revenue, pure advertising remained firm and performance-based advertising promoted the use of listing advertising (advertising promotion) which contributed to the expansion of sales. As for billing revenue, "Kabutan Premium" expanded steadily. The Company introduced two new services of U.S. stock version and bundled version of Japanese and U.S. stocks to "Kabutan Premium" on June 22, 2021.

As a result, consolidated sales for the first quarter of the current fiscal year was 512,636 thousand yen (44.5% increase YoY), and segment income was 161,025 thousand yen (2.1% increase YoY).

(Solution)

The solution business includes revenues from AI driven software content utilized the know-how of the media business and initial and monthly fee of ASP services providing information based fintech solution content assembled from crowd inputs of media sites the Company operates. During the first quarter of the current fiscal year, in addition to the continuous organic growth, large-sized initial installation projects contributed the performance.

As a result, sales was 618,944 thousand yen (31.8% increase YoY), and segment income was 107,190 thousand yen (53.3% increase YoY).

1. Explanation of Financial Position (Assets)
   Current assets at the end of the first quarter of the current fiscal year was 5,229,888 thousand yen with an increase of 354,677 thousand yen from the end of the previous fiscal year. This was mainly due to a decrease
2. • 2 -