User Local : Financial Results for Q4 FY2021.6

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 10, 2021

Financial Results

for the Fiscal Year Ended June 30, 2021

(Under Japanese GAAP)

Company name:	User Local, Inc.
Listing:	Tokyo Stock Exchange
Securities code:	3984
URL:	https://www.userlocal.jp/
Representative:	Masao Ito, President CEO
Inquiries:	Daisuke Iwamoto, CFO
Telephone:	[phone]

Scheduled date of ordinary general meeting of shareholders:	September 22, 2021
Scheduled date to file annual securities report:	September 22, 2021
Scheduled date to commence dividend payments:	September 24, 2021
Preparation of supplementary material on financial results:	Yes
Holding of financial results briefing:	Yes (for institutional investors and
	analysts)

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

1. Financial results for the fiscal year ending June 30, 2021 (from July 1, 2020 to June 30, 2021)

(1) Operating results								(% indicate year-on-year changes.)
	Net sales			Operating profit	Ordinary profit		Profit
Fiscal year ended	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen	%
June 30, 2021	2,088		25.2	854		24.4		850	29.3		615	46.6
June 30, 2020	1,667		25.0	687		29.7		658	24.2		419	29.1
	Basic earnings		Diluted earnings		Return on		Ordinary profit	Operating profit
			shareholders'
	per share			per share			to total assets	to net sales
				equity
Fiscal year ended	Yen		Yen				%		%		%
June 30, 2021	39.30			38.29			14.2			17.5		40.9
June 30, 2020	27.60			26.62			13.2			18.4		41.2

(Note) The Company conducted a 2-for-1 stock split of common stocks as of July 1, 2021.

The "Earnings per share" and the "Diluted earnings per share" are calculated assuming that the said stock split was conducted at the beginning of the previous fiscal year.

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(2) Financial position

		Total assets		Net assets	Equity-to-asset ratio	Net assets per share
As of		Millions of yen	Millions of yen	%	Yen
June 30, 2021		5,277		4,706	89.2	297.81
June 30, 2020		4,419		3,938	89.1	253.55
Reference: Equity
As of June 31, 2021:	¥4,706 million
As of June 30, 2020:	¥3,938 million

(Note) The Company conducted a 2-for-1 stock split of common stocks as of July 1, 2021.

The "Net assets per share" is calculated assuming that the said stock split was conducted at the beginning of the previous fiscal year.

(3) Cash flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at the end
	operating activities	investing activities	financing activities
	of period
Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
June 30, 2021	696	△100	64	4,695
June 30, 2020	621	△23	989	4,034

2. Cash dividends

		Annual dividends per share		Total	Payout	Dividends
						to net
	First	Second	Third		Fiscal	dividends	ratio
		assets
	quarter-end	quarter-end	quarter-end		year-end
	Yen	Yen	Yen		Yen	Millions of	%	%
		yen
Fiscal year ended	－	0.00	－		0.00	0.00
30 June, 2020
Fiscal year ended	－	0.00	－		5.00	39	6.4	0.9
30 June, 2021
Fiscal year ending	－	0.00	－		3.00		7.0
30 June, 2022 (Forecast)

(Note) The Company conducted a 2-for-1 stock split of common stocks as of July 1, 2021.

The "Cash dividend of Fiscal year ended 30 June 2020 and Fiscal year ended 30 June 2021" are noted actual amount dividends before the said stock split. "The forecast for Fiscal year ending 30 June, 2022" takes into account the impact of the said stock split.

3. Earnings Forecast for the Fiscal Year Ending June 30, 2022 (July 1, 2021 to June 30, 2022)

(% indicate changes from the previous fiscal year)

								Basic
Net Sales		Operating Profit	Ordinary Profit	Profit		earnings
		per
								share
Full year million yen	%	million yen	%	million yen	%	million yen	%	yen
2,504	20.0	984	15.2	984	15.7	679	10.4	42.99

(Note) The Company conducted a 2-for-1 stock split of common stocks as of July 1, 2021.

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• Notes

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: None
   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	15,885,600 shares
As of June 30, 2020	15,652,200 shares

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

As of June 30, 2021	83,584 shares
As of June 30, 2020	119,964 shares

(iii) Average number of shares outstanding during the period

	For the fiscal year ended June 30, 2021	15,660,754 shares
	For the fiscal year ended June 30, 2020	15,213,328 shares
	(Note) The Company conducted a 2-for-1 stock split of common stocks as of July 1, 2021.

The"Total number of issued shares", "Number of treasury shares" and "Average number of shares" are calculated assuming that the said stock split was conducted at the beginning of the previous fiscal year.

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters
  Forward-looking statements are based on information currently available to the Company and certain assumptions deemed reasonable. Results may differ materially from the forecasts due to various factors.

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