SHIKIGAKU : Consolidated Financial Results for the Six Months Ended August 31, 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 Six Months Ended August 31, 2021

[Japanese GAAP]

September 30, 2021

Company name: SHIKIGAKU. Co.,Ltd.

Stock exchange listing: Tokyo
Code number: 7049
URL: https://corp.shikigaku.jp/
Representative: Koudai Ando	President and Representative Director
Contact: Daisuke Sasaki		Director
Phone: [phone]
Scheduled date of filing quarterly securities report: October 14, 2021
Scheduled date of commencing dividend payments: -
Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session: Yes
									(Amounts of less than one million yen are rounded down)
1. Consolidated Financial Results for the Six Months Ended August 31, 2021 (March 01, 2021 to August 31, 2021)
(1) Consolidated Operating Results						(% indicates changes from the previous corresponding period.)
		Net sales		EBITDA	Operating profit	Ordinary profit		Profit attributable
				to owners of parent
Six months ended	Million yen		%	Million yen		%	Million yen		%	Million yen		%	Million yen	%
August 31, 2021		1,801		86.4		236		-	201		-	197		-	120	-
August 31, 2020		966		24.0		3		(97.9)	(24)		-	(25)		-	(105)	-

(Note) Comprehensive income:	Six months ended August 31, 2021:
	Six months ended August 31, 2020:

¥	276 million	[	-%]
¥	(112) million	[	-%]

	Basic earnings	Diluted earnings per
	per share	share
Six months ended	Yen	Yen
August 31, 2021	15.95	15.20
August 31, 2020	(14.22)	-

(2) Consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio
As of	Million yen		Million yen	%
August 31, 2021	3,243		1,624	37.4
February 28, 2021	2,392		1,138	37.5
(Reference) Equity: As of	August 31, 2021:	¥	1,211 million
As of	February 28, 2021:	¥	897 million

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2. Dividends

					Annual dividends
		1st	2nd		3rd		Year-end	Total
	quarter-end	quarter-end	quarter-end
		Yen		Yen	Yen		Yen	Yen
Fiscal year ended February 28, 2021		-		0.00	-		0.00	0.00
Fiscal year ending February 28, 2022		-		0.00
Fiscal year ending February 28, 2022					-		0.00	0.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	No
(Note) Breakdown of the 2nd quarter dividend for the fiscal year ending February 28, 2022 :
Commemorative dividend	-	yen
Special dividend	-	yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 28, 2022(March 01, 2021 to February 28, 2022) (% indicates changes from the previous corresponding period.)

Profit

Net sales

EBITDA

Operating profit

Ordinary profit

attributable to

Basic earnings

owners of

per share

parent

Million

Million

Million

Million

Million

yen

%

yen

%

yen

%

yen

%

yen

%

Yen

Full year

3,798

51.6

470

136.2

400

191.2

353

77.4

153

-

20.33

(Note) Revision to the financial results forecast announced most recently:

No

* Notes:

(1) Changes in significant subsidiaries during the six months ended August 31, 2021

(changes in specified subsidiaries resulting in changes in scope of consolidation):

Yes

New

１

(Company name: SHIKIGAKU No.2 Investment Partnership

)

Exclusion:

-

(Company name:

)

(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:

Yes

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):

August 31, 2021:	7,658,000	shares
February 28, 2021:	7,534,500	shares
2) Total number of treasury shares at the end of the period:
August 31, 2021:	59,632	shares
February 28, 2021:	59,632	shares

3) Average number of shares during the period:
Six months ended August 31, 2021:	7,544,208	shares
Six months ended August 31, 2020:	7,394,321	shares

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Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

					(Thousand yen)
				As of February 28,2021	As of August 31,2021
Assets
	Current assets
		Cash and deposits	1,243,050	1,957,891
		Accounts receivable - trade	288,919	267,711
		Merchandise	18,933	15,917
		Supplies	1,514	4,156
		Other	121,847	152,900
		Allowance for doubtful accounts	(6,671)	(6,603)
		Total current assets	1,667,594	2,391,973
	Non-current assets
		Property, plant and equipment	80,908	110,535
		Intangible assets
			Goodwill	153,422	130,681
			Other	40,678	57,743
			Total intangible assets	194,100	188,425
		Investments and other assets
			Investment securities	236,737	299,735
			Other	213,210	252,961
			Allowance for doubtful accounts	(150)	(200)
			Total investments and other assets	449,798	552,496
		Total non-current assets	724,807	851,458
	Total assets	2,392,402	3,243,431
Liabilities
	Current liabilities
		Accounts payable - trade	24,149	31,077
		Short-term borrowings	100,000	400,000
		Current portion of long-term borrowings	145,186	145,071
		Income taxes payable	47,775	126,481
		Provision for bonuses	3,312	5,649
		Advances received	189,152	249,858
		Other	359,199	337,013
		Total current liabilities	868,775	1,295,151
	Non-current liabilities
		Long-term borrowings	384,834	311,481
		Other	-	12,534
		Total non-current liabilities	384,834	324,015
	Total liabilities	1,253,609	1,619,167
Net assets
	Shareholders' equity
		Share capital	267,978	359,941
		Capital surplus	336,922	428,885
		Retained earnings	337,498	457,831
		Treasury shares	(45,041)	(45,041)
		Total shareholders' equity	897,356	1,201,617
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	-	10,281
		securities
		Total accumulated other comprehensive income	-	10,281
	Share acquisition rights	600	7,354
	Non-controlling interests	240,836	405,010
	Total net assets	1,138,792	1,624,264
Total liabilities and net assets	2,392,402	3,243,431

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Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the six months)

			(Thousand yen)
		For the six months	For the six months
		ended August 31,2020	ended August 31,2021
Net sales	966,588	1,801,483
Cost of sales	187,504	484,421
Gross profit	779,084	1,317,061
Selling, general and administrative expenses	803,466	1,115,769
Operating profit (loss)	(24,381)	201,292
Non-operating income
	Interest income	4	6
	Commission income	-	721
	Subsidy income	304	7,633
	Gain on investments in investment partnerships	-	614
	Other	232	1,343
	Total non-operating income	541	10,319
Non-operating expenses
	Interest expenses	1,521	2,525
	Share issuance costs	92	830
	Share of loss of entities accounted for using equity	-	10,703
	method
	Loss on investments in investment partnerships	464	-
	Other	-	282
	Total non-operating expenses	2,078	14,341
Ordinary profit (loss)	(25,918)	197,270
Extraordinary income
	Gain on sales of investment securities	-	167,463
	Total extraordinary income	-	167,463
Extraordinary losses
	Impairment loss	109,058	-
	Total extraordinary losses	109,058	-
Profit (loss) before income taxes	(134,976)	364,734
Income taxes	(22,207)	116,487
Profit (loss)	(112,769)	248,246
Profit (loss) attributable to non-controlling interests	(7,636)	127,913
Profit (loss) attributable to owners of parent	(105,132)	120,333

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Quarterly Consolidated Statements of Comprehensive Income (For the six months)

			(Thousand yen)
		For the six months	For the six months
		ended August 31,2020	ended August 31,2021
Profit	(112,769)	248,246
Other comprehensive income
	Valuation difference on available-for-sale securities	-	28,401
	Total other comprehensive income	-	28,401
Comprehensive income	(112,769)	276,648
Comprehensive income attributable to
	Comprehensive income attributable to owners of	(105,132)	130,615
	parent
	Comprehensive income attributable to non-controlling	(7,636)	146,033
	interests

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