Link U : Summary of Consolidated Financial Results (Japanese Accounting Standards) for the First Quarter of the Fiscal Year Ending July 31, 2022

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 Three Months Ended October 31, 2021 (Based on Japanese GAAP)

					December 15, 2021
Company name:	Link-U Inc.
Stock exchange listing:	Tokyo
Stock code:	4446	URL https://www.link-u.co.jp/
Representative:	Representative Director and President	Yuuki Matsubara
Inquiries:	Director and CFO	Yuuta Shimura	TEL [phone]
Scheduled date to file Quarterly Securities Report:	December 15, 2021
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:	Yes	(for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended October 31, 2021 (from August 1, 2021 to October 31, 2021)

(1) Consolidated operating results (cumulative)									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		%
Three months ended October 31, 2021	536		45.6		114		6.0		108			(0.5)		72		(0.5)
Three months ended October 31, 2020	368			-		108		-		108			-		72		-
	Earnings per share			Diluted earnings per share
					Yen				Yen
Three months ended October 31, 2021					5.13					5.09
Three months ended October 31, 2020					5.22					5.12
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio
	Millions of yen			Millions of yen					%
As of October 31, 2021			2,495						2,116				83.3
As of July 31, 2021			2,622						2,184				80.6
2. Cash dividends
							Annual dividends per share
	1st quarter-end		2nd quarter-end		3rd quarter-end	Fiscal year-end	Total
	Yen				Yen			Yen				Yen			Yen
Year ended July 31, 2021			-		0.00				-				0.00			0.00
Year ending July 31, 2022			-
Year ending July 31, 2022 (Forecast)					0.00				-				0.00			0.00

3. Forecast of consolidated financial results for the year ending July 31, 2022 (from August 1, 2021 to July 31, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Earnings per share
				owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen	%	Yen
Full year	2,165	32.5	243		7.8	221		0.9	143	(8.6)	10.16

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4. Notes

1. Changes in significant subsidiaries during the three months ended October 31, 2021 (changes in specified subsidiaries resulting in the change in scope of consolidation):
2. Application of special accounting methods for preparing quarterly consolidated financial statements:

No

Yes

(3) 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:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(4) Number of issued shares (common shares)

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

	As of October 31, 2021	14,131,500	shares	As of July 31, 2021	14,130,300	shares
Number of treasury shares at the end of the period
	As of October 31, 2021	68	shares	As of July 31, 2021	68	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended October 31, 2021	14,131,197	shares	Three months ended October 31, 2020	13,958,672	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of July 31, 2021	As of October 31, 2021
Assets
Current assets
Cash and deposits	1,041,742	886,486
Accounts receivable - trade	312,219	391,052
Work in process	18,911	31,616
Supplies	691	691
Other	178,445	132,406
Allowance for doubtful accounts	(2,347)	(2,384)
Total current assets	1,549,663	1,439,870
Non-current assets
Property, plant and equipment	194,439	184,756
Intangible assets
Goodwill	268,165	260,917
Other	3,289	7,162
Total intangible assets	271,455	268,080
Investments and other assets
Investment securities	455,915	486,645
Other	150,904	116,218
Total investments and other assets	606,820	602,864
Total non-current assets	1,072,715	1,055,700
Total assets	2,622,378	2,495,571
Liabilities
Current liabilities
Income taxes payable	14,347	44,116
Provision for bonuses	-	25,817
Other	423,874	309,244
Total current liabilities	438,222	379,178
Total liabilities	438,222	379,178
Net assets
Shareholders' equity
Share capital	476,396	476,482
Capital surplus	475,396	362,575
Retained earnings	1,162,721	1,235,215
Treasury shares	(135)	(135)
Total shareholders' equity	2,114,379	2,074,137
Accumulated other comprehensive income
Foreign currency translation adjustment	-	3,904
Total accumulated other comprehensive income	-	3,904
Share acquisition rights	420	420
Non-controlling interests	69,356	37,930
Total net assets	2,184,156	2,116,392
Total liabilities and net assets		2,622,378	2,495,571

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Three months ended	Three months ended
		October 31, 2020	October 31, 2021
Net sales	368,235	536,152
Cost of sales	133,957	147,980
Gross profit	234,278	388,172
Selling, general and administrative expenses	126,031	273,383
Operating profit	108,247	114,788
Non-operating income
Interest income	6	4
Outsourcing service income	762	40
Other	-	210
Total non-operating income	769	255
Non-operating expenses
Foreign exchange losses	159	224
Share of loss of entities accounted for using equity method	-	6,474
Other	0	-
Total non-operating expenses	160	6,698
Ordinary profit	108,855	108,344
Extraordinary losses
Provision for extraordinary loss on office transfer	3,923	-
Total extraordinary losses	3,923	-
Profit before income taxes	104,932	108,344
Income taxes	32,109	40,183
Profit	72,822	68,161
Loss attributable to non-controlling interests	-	(4,332)
Profit attributable to owners of parent		72,822	72,494

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Consolidated statements of comprehensive income (cumulative)

		(Thousands of yen)
	Three months ended	Three months ended
	October 31, 2020	October 31, 2021
Profit	72,822	68,161
Other comprehensive income
Foreign currency translation adjustment	-	3,904
Total other comprehensive income	-	3,904
Comprehensive income	72,822	72,065
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	72,822	76,398
Comprehensive income attributable to non-controlling	-	(4,332)
interests

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