Link U : Summary of Consolidated Financial Results (Japanese Accounting Standards) for the Second 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 Six Months Ended January 31, 2022 (Based on Japanese GAAP)

					March 15, 2022
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:	March 15, 2022
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 six months ended January 31, 2022 (from August 1, 2021 to January 31, 2022)

(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		%
Six months ended January 31, 2022	1,009		47.8		105		(15.2)		96		(18.3)		60		(24.3)
Six months ended January 31, 2021	682			-		124		-		117		-			79		-
	Earnings per share			Diluted earnings per share
					Yen				Yen
Six months ended January 31, 2022					4.26					4.23
Six months ended January 31, 2021					5.69					5.58
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio
	Millions of yen			Millions of yen				%
As of January 31, 2022			2,544						2,100				81.3
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			-		0.00
Year ending July 31, 2022 (Forecast)											-				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 six months ended January 31, 2022 (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 January 31, 2022	14,132,700	shares	As of July 31, 2021	14,130,300	shares
Number of treasury shares at the end of the period
	As of January 31, 2022	68	shares	As of July 31, 2021	68	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended January 31, 2022	14,131,315	shares	Six months ended January 31, 2021	13,964,472	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of July 31, 2021	As of January 31, 2022
Assets
Current assets
Cash and deposits	1,041,742	961,946
Accounts receivable - trade	312,219	-
Trade receivables and contract asset	-	387,186
Work in process	18,911	-
Supplies	691	691
Other	178,445	167,152
Allowance for doubtful accounts	(2,347)	(2,557)
Total current assets	1,549,663	1,514,420
Non-current assets
Property, plant and equipment	194,439	174,977
Intangible assets
Goodwill	268,165	253,670
Other	3,289	11,666
Total intangible assets	271,455	265,336
Investments and other assets
Investment securities	455,915	474,643
Other	150,904	114,829
Total investments and other assets	606,820	589,472
Total non-current assets	1,072,715	1,029,786
Total assets	2,622,378	2,544,207
Liabilities
Current liabilities
Income taxes payable	14,347	53,461
Provision for bonuses	-	20,351
Other	423,874	369,901
Total current liabilities	438,222	443,714
Total liabilities	438,222	443,714
Net assets
Shareholders' equity
Share capital	476,396	476,482
Capital surplus	475,396	362,575
Retained earnings	1,162,721	1,222,901
Treasury shares	(135)	(135)
Total shareholders' equity	2,114,379	2,061,823
Accumulated other comprehensive income
Foreign currency translation adjustment	-	5,499
Total accumulated other comprehensive income	-	5,499
Share acquisition rights	420	420
Non-controlling interests	69,356	32,749
Total net assets	2,184,156	2,100,492
Total liabilities and net assets		2,622,378	2,544,207

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

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Six months ended	Six months ended
		January 31, 2021	January 31, 2022
Net sales	682,920	1,009,533
Cost of sales	257,788	333,805
Gross profit	425,131	675,727
Selling, general and administrative expenses	300,521	570,075
Operating profit	124,609	105,652
Non-operating income
Interest income	7	5
Outsourcing service income	839	518
Other	205	460
Total non-operating income	1,052	984
Non-operating expenses
Foreign exchange losses	317	304
Share of loss of entities accounted for using equity method	7,509	10,072
Other	0	-
Total non-operating expenses	7,828	10,376
Ordinary profit	117,834	96,259
Extraordinary income
Gain on change in equity	8,159	-
Total extraordinary income	8,159	-
Extraordinary losses
Provision for extraordinary loss on office transfer	3,923	-
Total extraordinary losses	3,923	-
Profit before income taxes	122,070	96,259
Income taxes	39,187	45,593
Profit	82,882	50,666
Profit (loss) attributable to non-controlling interests	3,402	(9,513)
Profit attributable to owners of parent		79,480	60,179

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Consolidated statements of comprehensive income (cumulative)

		(Thousands of yen)
	Six months ended	Six months ended
	January 31, 2021	January 31, 2022
Profit	82,882	50,666
Other comprehensive income
Foreign currency translation adjustment	-	5,499
Total other comprehensive income	-	5,499
Comprehensive income	82,882	56,165
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	79,480	65,679
Comprehensive income attributable to non-controlling	3,402	(9,513)
interests

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