V cube : FY2023.Q2 Financial Results

Summary of Consolidated Financial Results

for the Six Months Ended June 30, 2023 (Japanese GAAP)

August 10, 2023

Company name: V-cube, Inc.

Securities code: 3681

Stock exchange listings: The Prime Market of the Tokyo Stock Exchange

URL: (Japanese) http://jp.vcube.com/ (English) http://www.vcube.com/

Quarterly statement filing date (as planned): August 10, 2023

1.Results of the Second quarter ended June 30, 2023

(millions of Yen, except per share amounts)

(1) Consolidated quarterly operating results:

	Net sales		Adjusted		Adjusted		Operating profit
		EBITDA		Operating profit
Six months ended	Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen	%
Jun. 30, 2023	5,751		-13.0	794		-37.4	309		-62.9	117	-82.6
Jun. 30, 2022	6,610		9.7	1,270		-17.9	832		-22.2	673	-34.1

Note:

Comprehensive income For Six months ended Jun. 30, 2023:

¥677 million

[-58.5%]

For Six months ended Jun. 30, 2022:

¥1,633 million

[-74.2%]

Ordinary profit

Profit attributable to

Basic earnings

Diluted earnings

owners of parent

per share

per share

Six months ended

Millions of yen

%

Millions of yen

%

Yen

Yen

Jun. 30, 2023

91

-85.6

4

-99.2

0.18

0.18

Jun. 30, 2022

633

-32.5

519

-42.9

21.42

21.12

(2) Consolidated financial position:

Total assets

Net assets

Capital adequacy

Net assets per share

ratio

As of

Millions of yen

Millions of yen

%

Yen

Jun. 30, 2023

18,352

6,575

35.2

266.21

Dec. 31, 2022

16,891

5,989

34.9

243.12

Reference:

Owner's equity

As of Jun. 30, 2023: ¥6,461 million

As of Dec. 31, 2022: ¥5,900 million

2.Dividends

Annual dividends per share

First quarter-

Second quarter-

Third quarter-

Fiscal

Total

end

end

end

year-end

Yen

Yen

Yen

Yen

Yen

Fiscal year ended

-

0.00

-

4.00

4.00

Dec. 31, 2022

Fiscal year ended

-

0.00

Dec. 31, 2023

Fiscal year ending

-

0.00

0.00

Dec. 31, 2023 (Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: Yes

3.Consolidated forecasts

(millions of Yen, except per share amounts)

Adjusted

Profit

Basic

Adjusted

Operating

Ordinary

attributable

earnings

Net sales

Operating

EBITDA

profit

profit

to owners of

per

profit

parent

share

Millions

%

Millions

%

Millions

%

Millio

%

Millions

%

Millions

%

Yen

ns of

of yen

of yen

of yen

yen

of yen

of yen

Fiscal year ended

11,500

-6.0

1,570

-19.3

475

-53.7

100

-85.2

10

-98.4

-

-

-

Dec. 31, 2023

Note: Revisions to the forecasts most recently announced: Yes

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4.Others

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: None
3. Changes in accounting policies, changes in accounting estimates, and restatement
4. 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
5. Number of issued and outstanding shares (common stock)

1. Number of issued and outstanding shares at the period end (including treasury stock)

As of December 31, 2022

24,737,400 shares

As of June 30, 2023

24,737,400 shares

(ii) Number of treasury stock at the end of fiscal year

As of December 31, 2022

466,472 shares

As of June 30, 2023

466,472 shares

(iii) Average number of shares (quarterly period-YTD)

Six months ended

June 30, 2022

24,270,957 shares

Six months ended

June 30, 2023

24,270,928 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Explanation related to appropriate use of results forecasts and other items warranting special mention

The above forecasts are based on the information available as of the date of the release of this document. As a result, a variety of factors in the future may cause actual results to differ from these forecasts.

2

Consolidated Financial Statements

(1) Consolidated Balance Sheet

		(Thousands of yen)
	As of December 31, 2022	As of June 30, 2023
Assets
Current assets
Cash and deposits	1,699,697	1,914,060
Notes and accounts receivable - trade	1,737,481	1,729,992
Advance payments to suppliers	1,200	－
Other	701,493	787,044
Allowance for doubtful accounts	△17,761	△7,279
Total current assets	4,122,111	4,423,818
Non-current assets
Property, plant and equipment	2,047,246	2,022,454
Intangible assets
Software	1,895,581	2,294,434
Software in progress	1,127,471	1,352,176
Goodwill	4,071,947	4,363,196
Total intangible assets	7,095,000	8,009,806
Investments and other assets
Investment securities	416,372	585,689
Shares of subsidiaries and associates	337,466	405,984
Leasehold and guarantee deposits	340,928	333,448
Long-term loans receivable	33,175	36,247
Deferred tax assets	1,875,064	1,897,922
Long-term prepaid expenses	58,889	66,104
Other	566,609	572,066
Allowance for doubtful accounts	△999	△999
Total investments and other assets	3,627,505	3,896,463
Total non-current assets	12,769,752	13,928,724
Total assets	16,891,863	18,352,543

3

			(Thousands of yen)
		As of December 31, 2022	As of June 30, 2023
Liabilities
Current liabilities
Accounts payable - trade	494,496	389,181
Short-term borrowings	2,627,160	3,875,998
Current portion of long-term borrowings	3,998,600	4,038,600
Contract liabilities	922,951	1,071,817
Provision for bonuses	91,824	115,542
Income taxes payable	75,007	36,050
Other	1,114,427	937,784
Total current liabilities	9,324,467	10,464,974
Non-current liabilities
Long-term borrowings	953,000	758,200
Lease liabilities	310,631	244,350
Asset retirement obligations	296,136	289,809
Other	18,098	19,841
Total non-current liabilities	1,577,866	1,312,202
Total liabilities	10,902,333	11,777,176
Net assets
Shareholders' equity
Share capital	92,190	92,190
Capital surplus	2,831,834	2,831,834
Retained earnings	2,500,230	2,407,540
Treasury shares	△794,791	△794,791
Total shareholders' equity	4,629,464	4,536,774
Accumulated other comprehensive income
Valuation difference on available-for-sale	52,826	82,493
securities
Foreign currency translation adjustment	1,218,365	1,841,975
Total accumulated other comprehensive	1,271,192	1,924,469
income
Share acquisition rights	2,160	8,410
Non-controlling interests	86,713	105,713
Total net assets	5,989,529	6,575,367
Total liabilities and net assets	16,891,863	18,352,543

4

1. Consolidated Statement of Income and Comprehensive Income (Consolidated Statement of Income)

		(Thousands of yen)
	Six months ended	Six months ended
	June 30, 2022	June 30, 2023
Net sales	6,610,479	5,751,389
Cost of sales	3,524,978	3,158,890
Gross profit	3,085,501	2,592,498
Selling, general and administrative expenses	2,412,279	2,475,185
Operating profit	673,221	117,313
Non-operating income
Interest income	1,702	1,525
Insurance claim income	1,670	1,421
Foreign exchange gains	－	5,533
Subsidy income	5,536	1,671
Gain on valuation of investment securities	－	15,353
Other	2,257	1,654
Total non-operating income	11,167	27,160
Non-operating expenses
Interest expenses	22,578	23,207
Foreign exchange losses	13,101	－
Commission expenses	229	748
Loss on valuation of investment securities	－	18,592
Rents-NOE	2,984	－
Share of loss of entities accounted for using	11,610	5,463
equity method
Other	242	5,451
Total non-operating expenses	50,746	53,463
Ordinary profit	633,642	91,009
Extraordinary income
Settlement income	－	10,000
Total extraordinary income	－	10,000
Extraordinary losses
Loss on retirement of non-current assets	759	4,200
Loss on cancellation of leases	8,564	4,238
Settlement payments	7,510	18,852
Office relocation expenses	－	10,115
Loss on business restructuring	－	7,298
Other	630	－
Total extraordinary losses	17,464	44,705
Profit before income taxes	616,177	56,304
Income taxes - current	35,248	△13,449
Income taxes - deferred	35,378	45,477
Total income taxes	70,626	32,027
Profit	545,550	24,276
Profit attributable to non-controlling interests	25,731	19,883
Profit attributable to owners of parent	519,818	4,393

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