Cross Marketing : Consolidated Financial Results for the Fiscal Year Ended Jun.30, 2022

Note: This document has been translated from a part of 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.

Consolidated Financial Results

for the Fiscal Year Ended June 30, 2022

[ Japanese GAAP ]

August 15, 2022

Company name:	Cross Marketing Group Inc.
Stock exchange listing:	Tokyo Stock Exchange
Code number:	3675
URL:	https://www.cm-group.co.jp
Representative:	Miki Igarashi, President & CEO
Contact:	Koji Onozuka, Director & CFO / Phone: [phone]

Scheduled date of holding regular meeting of shareholders:	September 29, 2022
Scheduled date of commencing dividend payments:	September 30, 2022
Scheduled date of filing marketable securities reports:	September 29, 2022
Availability of supplementary briefing material on financial results: Available
Schedule of financial results briefing session:	Available

(Amounts less than one million yen are rounded to the nearest million yen)

1. Consolidated Financial Results for the year ended June 30, 2022 (July 1, 2021 to June 30, 2022)
(1) Consolidated Operating Results			(% indicates changes from the previous corresponding period)
													Net income
		Net sales		Operating income	Ordinary income		attributable to
													owners of parent
Year ended		Million yen		%	Million yen	%	Million yen	%		Million yen	%
June 30, 2022		24,899		-	2,522	-			2,498	-		1,559	-
June 30, 2021		10,758		-	1,007	-			1,048	-		540	-
(Note) Comprehensive income: Year Ended June 30, 2022: ¥1,760 million [-%]
		Year Ended June 30, 2021: ¥492 million [-%]
	Basic earnings	Diluted earnings	Ratio of profit to		Ratio of ordinary	Ratio of
		income to total	operating profit
		per share		per share		new worth
					assets			to net sales
Year Ended		Yen			Yen			%			%		%
June 30,2022	79.07			78.29			31.9			20.1		10.1
June 30, 2021	27.50			27.42			14.3			9.0		9.4

(Reference) Equity in earnings of affiliates: Year Ended June 30, 2022: ¥ (21) million Year Ended June 30, 2021: ¥ (23) million

(Note) The fiscal year end has been changed from December 31 to June 30 in the fiscal year ended June 30, 2021. Therefore, comparisons are not shown in the table. Furthermore, net sales increased by 30.8%, operating income increased by 38.0%, ordinary income increased by 28.7%, and net income attributable to owners of the parent increased by 60.0% when the fiscal year ending June 30, 2022(July 1, 2021 to June 30,2022) is compared with the same period of the previous year (July 1, 2020 to June 30, 2021).

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio	Net assets per Share
	Million yen	Million yen	%	yen
As of June 30, 2022	13,133	6,136	43.9	291.24
As of June 30, 2021	11,775	4,339	34.0	204.27
		1

(Reference) Equity: Year Ended June 30, 2022: ¥5,764 million Year Ended June 30, 2021: ¥4,001 million

(3) Consolidated Cash Flow Position

Cash flow

Cash flow by

Cash flow by

Cash and cash

equivalents end

by sales activity

investment activity

financing activity

balance

Year Ended

Million yen

Million yen

Million yen

Million yen

June 30, 2022

1,951

(900)

(777)

5,504

June 30, 2021

1,046

292

(1,471)

5,140

2. Dividends

Annual dividends

Dividends

Payout

Net dividends

1st

2nd

3rd

Year-end

Total

total

ratio

ratio

quarter-end

quarter-end

quarter-end

amount

(Consolidated)

(Consolidated)

Fiscal Year Ended

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

June 30, 2021

－

－

－

4.00

4.00

78

14.5

2.1

June 30, 2022

－

4.30

－

5.30

9.60

190

12.1

3.9

Fiscal year ending

June 30, 2023

－

6.00

－

6.00

12.00

13.3

(Forecast)

3. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2023(July 1, 2022 to June 30, 2023)

(% indicates changes from the previous corresponding period)

							Net income	Basic earnings per
	Net sales		Operating income	Ordinary income	attributable to
		share
							owners of parent
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	28,000	12.5	3,000	19.0	2,900	16.1	1,800	15.4	90.13

* Notes:

1. Changes in significant subsidiaries during the year ended June 30, 2022 (changes in specified subsidiaries resulting in changes in scope of consolidation): No

Newly included: -

(Company name: - ) Excluded: -

(Company name: - )

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):

June 30, 2022: 19,970,464 shares

June 30, 2021: 19,970,464 shares

1. Total number of treasury shares at the end of the period: June 30, 2022: 178,355 shares
   June 30, 2021: 382,448 shares
2. Average number of shares during the period:

June 30, 2022: 19,722,715 shares

June 30, 2021: 19,638,196 shares

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(Reference) Summary of Individual Financial Results
Individual Financial Results for the year ended June 30, 2022 (July 1, 2021 to June 30, 2022)
(1) Individual Operating Results		(% indicates changes from the previous corresponding period.)
	Net sales	Operating income	Ordinary income	Net income
Year ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%
June 30, 2022	2,687	-	591	-	588	-	304	-
June 30, 2021	1,095	-	95	-	107	-	(159)	-
	Basic earnings per	Diluted earnings per
	share		share
Year Ended		Yen		Yen
June 30, 2022		15.42		15.26
June 30, 2021		(8.09)		-

(Note) The fiscal year end has been changed from December 31 to June 30 in the fiscal year ended June 30, 2021. Therefore, comparisons are not shown in the table.

(2) Individual Financial Position

	Total assets	Net assets	Equity ratio	Net assets per Share
	Million yen	Million yen	%	yen
As of June 30, 2022	6,223	3,424	55.0	172.94
As of June 30, 2021	6,373	3,096	48.6	157.97

(Reference) Equity: Year Ended June 30, 2022: ¥3,423 million Year Ended June 30, 2021: ¥3,094 million

• Presentation regarding the auditing status of the fiscal year review procedures

These fiscal year financial results are outside the scope of fiscal year review procedures under the Financial Instruments and Exchange Act.

* Explanation of the proper use of financial results forecast and other notes

The earnings forecasts and other forward-looking statements herein are based on data currently available to Cross Marketing Group Inc. (CMG) and its reasonable assumption. Actual results may differ significantly from these forecasts due to various factors.

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