Japan Living Warranty : Summary of Consolidated Financial Results for the Year Ended June 30,2021(Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results

for the Year Ended June 30, 2021

(Based on Japanese GAAP)

																		August 11, 2021
Company name:	Japan Living Warranty Inc.
Stock exchange listing:	Tokyo
Stock code:	7320	URL https://jlw.jp
Representative:	Representative director and president	Yoshitaka Adachi
Inquiries:	Director, General Manager of Administration Atsushi Yoshikawa	TEL [phone]
	Headquarters
Scheduled date of ordinary general meeting of shareholders:	September 28, 2021
Scheduled date to file Securities Report:		September 28, 2021
Scheduled date to commence dividend payments:		September 29, 2021
Preparation of supplementary material on financial results:		Yes
Holding of financial results meeting:						Yes	(for institutional investors and analysts)
											(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended June 30, 2021 (from July 1, 2020 to June 30, 2021)
(1) Consolidated operating results												Percentages indicate year-on-year changes
			Net sales		Operating profit	Ordinary profit	Profit attributable to
				owners of parent
			Millions of yen		%	Millions of yen		%	Millions of yen	%	Millions of yen		%
Year ended June 30, 2021		2,801		43.3	554		170.7		630	121.5			362		94.5
Year ended June 30, 2020		1,955		18.7	204		13.2		284	33.6			186		30.4
			Earnings per share	Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
				share			owners of				assets			sales
									parent/equity
				Yen		Yen				%					%				%
Year ended June 30, 2021		72.72		71.22				46.5					5.6				19.8
Year ended June 30, 2020		37.35		36.51				33.7					3.8				10.5
(2) Consolidated financial position
			Total assets		Net assets		Equity ratio	Net assets per share
			Millions of yen	Millions of yen					%					Yen
As of June 30, 2021			14,375					928					6.5					185.69
As of June 30, 2020			8,288					630					7.6					126.08
(3) Consolidated cash flows
			Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
			operating activities	investing activities	financing activities		at end of period
			Millions of yen	Millions of yen	Millions of yen		Millions of yen
Year ended June 30, 2021		5,120					(1,631)					420					5,172
Year ended June 30, 2020					573					(1,469)					74					1,262
2. Cash dividends
						Annual dividends per share					Total cash	Dividend payout	Ratio of dividends
															to net assets
			1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
			Yen		Yen	Yen				Yen	Yen	Millions of yen	%			%
Year ended June 30, 2020		-		0.00	-				5.00	5.00		25	13.4			4.5
Year ended June 30, 2021		-		0.00	-				10.00	10.00		50	13.8			6.4
Year ending June 30, 2022		-			0.00	-				10.00	10.00			10.8
(Forecast)

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3. Forecast of consolidated financial results for the year ending June 30, 2022 (from July 1, 2021 to June 30, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit		Profit attributable to	Earnings per share
			owners of parent
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
1,510	24.4	330	87.2	375	46.9		245	46.6	48.97
December 31, 2021
Full year	3,100	10.6	610	10.0	710	12.6		465	28.1	92.96
4. Notes
(1) Changes in significant subsidiaries during the year ended June 30, 2021			No
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:					No
Changes in accounting estimates:							No
Restatement of prior period financial statements:					No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of June 30, 2021	5,058,300	shares	As of June 30, 2020	5,004,300	shares
Number of treasury shares at the end of the period
	As of June 30, 2021	56,175	shares	As of June 30, 2020	83	shares
Average number of shares during the period
	Year ended June 30, 2021	4,990,627	shares	Year ended June 30, 2020	4,993,867	shares

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Consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of June 30, 2020	As of June 30, 2021
Assets
Current assets
Cash and deposits	1,203,678	5,547,736
Accounts receivable - trade	46,735	55,872
Securities	58,390	125,052
Money held in trust	99,902	199,902
Prepaid expenses	265,170	339,109
Advances paid	670,090	751,332
Other	96,711	286,899
Total current assets	2,440,680	7,305,904
Non-current assets
Property, plant and equipment
Buildings	49,738	73,785
Accumulated depreciation	(2,588)	(11,809)
Buildings, net	47,150	61,976
Land	1,339	39,793
Other	39,779	226,797
Accumulated depreciation	(11,482)	(17,887)
Other, net	28,296	208,909
Total property, plant and equipment	76,786	310,679
Intangible assets
Other	91,928	139,645
Total intangible assets	91,928	139,645
Investments and other assets
Investment securities	693,952	964,329
Investments in capital	500,000	200,010
Guarantee deposits	1,318,868	1,165,095
Long-term prepaid expenses	2,056,249	2,090,806
Investment property	896,238	1,937,526
Accumulated depreciation	(17,973)	(36,644)
Investment property, net	878,264	1,900,882
Other	232,027	297,282
Total investments and other assets	5,679,362	6,618,406
Total non-current assets	5,848,077	7,068,731
Deferred assets
Business commencement expenses	-	517
Total deferred assets	-	517
Total assets		8,288,758	14,375,154

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			(Thousands of yen)
		As of June 30, 2020	As of June 30, 2021
Liabilities
Current liabilities
Accounts payable - trade	67,139	74,701
Current portion of long-term borrowings	5,880	33,880
Income taxes payable	37,350	222,602
Unearned revenue	953,056	1,135,091
Deposits received	207,848	1,508,352
Provision for bonuses	40,500	79,700
Provision for bonuses for directors (and other officers)	-	20,000
Other	167,475	324,726
Total current liabilities	1,479,250	3,399,054
Non-current liabilities
Long-term borrowings	91,670	619,001
Long-term unearned revenue	4,461,783	5,507,472
Long-term deposits received	1,610,800	3,873,866
Provision for point card certificates	4,806	6,322
Other	9,503	40,554
Total non-current liabilities	6,178,564	10,047,216
Total liabilities	7,657,814	13,446,271
Net assets
Shareholders' equity
Share capital	206,771	211,826
Capital surplus	181,771	186,826
Retained earnings	257,427	595,327
Treasury shares	(93)	(120,382)
Total shareholders' equity	645,877	873,598
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	(14,934)	55,284
Total accumulated other comprehensive income	(14,934)	55,284
Total net assets	630,943	928,882
Total liabilities and net assets		8,288,758	14,375,154

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Thousands of yen)
		Fiscal year ended	Fiscal year ended
		June 30, 2020	June 30, 2021
Net sales	1,955,484	2,801,895
Cost of sales	766,557	969,245
Gross profit	1,188,926	1,832,650
Selling, general and administrative expenses	984,123	1,278,234
Operating profit	204,802	554,416
Non-operating income
Interest income	6,583	7,509
Dividend income	5,712	4,192
Gain on sale of securities	24,308	53,789
Rental income from investment property	48,561	89,338
Other	20,334	16,120
Total non-operating income	105,501	170,950
Non-operating expenses
Interest expenses	293	3,254
Loss on sale of securities	3,440	39,892
Rent expenses of real estate for investment	20,848	49,316
Other	976	2,145
Total non-operating expenses	25,560	94,608
Ordinary profit	284,743	630,757
Extraordinary losses
Loss on retirement of non-current assets	112	-
Head office relocation expenses	6,902	-
Bad debts written off	-	16,378
Impairment losses	-	49,770
Total extraordinary losses	7,014	66,148
Profit before income taxes	277,729	564,609
Income taxes - current	80,856	226,791
Income taxes - deferred	10,315	(25,102)
Total income taxes	91,171	201,688
Profit	186,557	362,920
Profit attributable to owners of parent		186,557	362,920

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