SHIKIGAKU : Consolidated Financial Results for the Three Months Ended May 31, 2022

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 Three Months Ended May 31, 2022

[Japanese GAAP]

June 30, 2022

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	Executive Officer
Phone: [phone]

Scheduled date of filing quarterly securities report: July 14, 2022

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 Three Months Ended May 31, 2022 (March 01, 2022 to May 31, 2022)

(1) Consolidated Operating Results				(% 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	%
May 31, 2022	1,102	30.6	49	(43.7)	33	(52.9)	20	(65.2)	(26)	-
May 31, 2021	844	98.1	88	-	71	-	59	-	21	-

(Note) Comprehensive income:	Three months ended May 31, 2022:
	Three months ended May 31, 2021:

¥	(36) million	[	-%]
¥	15 million	[	-%]

	Basic earnings		Diluted earnings per
	per share		share
Three months ended		Yen	Yen
May 31, 2022		(3.24)	-
May 31, 2021		2.84	2.69

(2) Consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio
As of	Million yen		Million yen	%
May 31, 2022	3,556		2,519	60.0
February 28, 2022	4,089		2,731	57.8
(Reference) Equity: As of	May 31, 2022:	¥	2,133 million
As of	February 28, 2022:	¥	2,363 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 February 28, 2022		-		0.00	-		0.00	0.00
Fiscal year ending February 28, 2023		-
Fiscal year ending February 28, 2023				0.00	-		0.00	0.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	No
(Note) Breakdown of the 1st quarter dividend for the fiscal year ending February 28, 2023 :
Commemorative dividend	-	yen
Special dividend	-	yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 28, 2023(March 01, 2022 to February 28, 2023)

(% indicates changes from the previous corresponding period.)

Net sales

EBITDA

Operating profit

Ordinary profit

Profit attributable

Basic earnings

to owners of

per share

parent

Million

Million

Million

Million

Million

yen

%

yen

%

yen

%

yen

%

yen

%

Yen

Full year

4,962

29.8

474

10.4

400

11.3

382

10.4

204

(9.1)

24.94

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

No

* Notes:

(1) Changes in significant subsidiaries during the three months ended May 31, 2022

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

No

(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: Yes
   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):

May 31, 2022:	8,268,900	shares
February 28, 2022:	8,196,900	shares
2) Total number of treasury shares at the end of the period:
May 31, 2022:	205,660	shares
February 28, 2022:	55,215	shares

3) Average number of shares during the period:
Three months ended May 31, 2022:	8,070,301	shares
Three months ended May 31, 2021:	7,502,278	shares

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

					(Thousand yen)
				As of February 28,2022	As of May 31,2022
Assets
	Current assets
		Cash and deposits	2,625,498	1,756,236
		Accounts receivable	306,926	360,691
		Operational investment securities	118,400	316,703
		Merchandise	17,565	15,550
		Supplies	1,493	1,957
		Other	181,993	274,470
		Allowance for doubtful accounts	(5,719)	(7,072)
		Total current assets	3,246,158	2,718,537
	Non-current assets
		Property, plant and equipment	98,036	95,604
		Intangible assets
			Goodwill	92,229	81,982
			Other	128,136	150,893
			Total intangible assets	220,366	232,875
		Investments and other assets
			Investment securities	270,487	268,670
			Other	254,664	241,184
			Allowance for doubtful accounts	(200)	(200)
			Total investments and other assets	524,951	509,654
		Total non-current assets	843,355	838,134
	Total assets	4,089,513	3,556,672
Liabilities
	Current liabilities
		Accounts payable - trade	19,677	6,373
		Current portion of long-term borrowings	146,484	136,676
		Income taxes payable	161,410	26,322
		Provision for bonuses	3,910	24,300
		Advances received	252,364	209,115
		Other	528,280	513,991
		Total current liabilities	1,112,126	916,778
	Non-current liabilities
		Long-term borrowings	238,350	113,587
		Other	7,082	7,057
		Total non-current liabilities	245,432	120,644
	Total liabilities	1,357,559	1,037,422
Net assets
	Shareholders' equity
		Share capital	866,284	869,308
		Capital surplus	936,859	929,771
		Retained earnings	591,311	565,165
		Treasury shares	(41,754)	(241,693)
		Total shareholders' equity	2,352,700	2,122,551
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	11,075	11,067
		securities
		Total accumulated other comprehensive income	11,075	11,067
	Share acquisition rights	600	2,660
	Non-controlling interests	367,577	382,970
	Total net assets	2,731,954	2,519,249
Total liabilities and net assets	4,089,513	3,556,672

Quarterly Consolidated Statements of Income and Comprehensive Income
	Quarterly Consolidated Statements of Income (For the three months)
			(Thousand yen)
		For the three months	For the three months
		ended May 31,2021	ended May 31,2022
Net sales	844,063	1,102,373
Cost of sales	231,312	240,034
Gross profit	612,750	862,338
Selling, general and administrative expenses	541,123	828,569
Operating profit	71,627	33,768
Non-operating income
	Interest income	0	1
	Commission income	721	-
	Subsidy income	990	1,140
	Surrender value of insurance policies	-	2,910
	Other	578	1,231
	Total non-operating income	2,290	5,284
Non-operating expenses
	Interest expenses	1,301	390
	Share issuance costs	370	91
	Share of loss of entities accounted for using equity	13,018	3,193
	method
	Amortization of restricted stock remuneration	-	14,497
	Other	89	310
	Total non-operating expenses	14,780	18,483
Ordinary profit	59,137	20,569
Extraordinary losses
	Cancellation penalty	-	30,400
	Total extraordinary losses	-	30,400
Profit (loss) before income taxes	59,137	(9,830)
Income taxes	43,851	26,374
Profit (loss)	15,285	(36,205)
Loss attributable to non-controlling interests	(5,995)	(10,059)
Profit (loss) attributable to owners of parent	21,281	(26,145)

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

			(Thousand yen)
		For the three months	For the three months
		ended May 31,2021	ended May 31,2022
Profit (loss)	15,285	(36,205)
Other comprehensive income
	Valuation difference on available-for-sale securities	-	(56)
	Total other comprehensive income	-	(56)
Comprehensive income	15,285	(36,261)
Comprehensive income attributable to
	Comprehensive income attributable to owners of	21,281	(26,154)
	parent
	Comprehensive income attributable to non-controlling	(5,995)	(10,107)
	interests