Link U : Summary of Consolidated Financial Results (Japanese Accounting Standards) for the Third 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 Nine Months Ended April 30, 2022 (Based on Japanese GAAP)

					June 14, 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:	June 14, 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 nine months ended April 30, 2022 (from August 1, 2021 to April 30, 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		%
Nine months ended April 30, 2022	1,633		38.8		146		(35.6)		128		(41.5)		73		(47.2)
Nine months ended April 30, 2021	1,176			-		227		-		219		-			140		-
	Earnings per share		Diluted earnings per share
				Yen						Yen
Nine months ended April 30, 2022			5.24						5.20
Nine months ended April 30, 2021			10.01						9.85
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio
	Millions of yen			Millions of yen				%
As of April 30, 2022			2,771						2,168				75.5
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	2,169	32.7	88	(60.7)	40	(81.6)	(23)		-	(1.63)

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4. Notes

1. Changes in significant subsidiaries during the nine months ended April 30, 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:

Yes

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 April 30, 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 April 30, 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)
	Nine months ended April 30, 2022	14,131,516	shares	Nine months ended April 30, 2021	14,009,161	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of July 31, 2021	As of April 30, 2022
Assets
Current assets
Cash and deposits	1,041,742	961,503
Accounts receivable - trade	312,219	-
Trade receivables and contract asset	-	430,683
Work in process	18,911	-
Supplies	691	691
Other	178,445	301,573
Allowance for doubtful accounts	(2,347)	(3,015)
Total current assets	1,549,663	1,691,437
Non-current assets
Property, plant and equipment	194,439	167,250
Intangible assets
Goodwill	268,165	246,422
Other	3,289	54,130
Total intangible assets	271,455	300,552
Investments and other assets
Investment securities	455,915	483,431
Other	150,904	127,861
Total investments and other assets	606,820	611,292
Total non-current assets	1,072,715	1,079,094
Deferred assets	-	558
Total assets	2,622,378	2,771,091
Liabilities
Current liabilities
Accrued expenses	205,601	305,755
Income taxes payable	14,347	45,356
Provision for bonuses	-	29,573
Other	218,273	221,769
Total current liabilities	438,222	602,454
Total liabilities	438,222	602,454
Net assets
Shareholders' equity
Share capital	476,396	476,567
Capital surplus	475,396	362,660
Retained earnings	1,162,721	1,236,653
Treasury shares	(135)	(135)
Total shareholders' equity	2,114,379	2,075,746
Accumulated other comprehensive income
Foreign currency translation adjustment	-	17,302
Total accumulated other comprehensive income	-	17,302
Share acquisition rights	420	420
Non-controlling interests	69,356	75,167
Total net assets	2,184,156	2,168,636
Total liabilities and net assets		2,622,378	2,771,091

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

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Nine months ended	Nine months ended
		April 30, 2021	April 30, 2022
Net sales	1,176,438	1,633,197
Cost of sales	385,439	572,086
Gross profit	790,999	1,061,111
Selling, general and administrative expenses	563,530	914,620
Operating profit	227,468	146,491
Non-operating income
Interest income	13	34
Outsourcing service income	899	-
compensation received	4,000	-
Other	444	3,993
Total non-operating income	5,357	4,028
Non-operating expenses
Interest expenses	6	-
Foreign exchange losses	345	547
Share of loss of entities accounted for using equity method	11,608	21,178
Office relocation expenses	1,087	130
Other	0	62
Total non-operating expenses	13,049	21,917
Ordinary profit	219,776	128,602
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	224,012	128,602
Income taxes	77,171	69,893
Profit	146,840	58,708
Profit (loss) attributable to non-controlling interests	6,660	(15,278)
Profit attributable to owners of parent		140,179	73,987

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Consolidated statements of comprehensive income (cumulative)

		(Thousands of yen)
	Nine months ended	Nine months ended
	April 30, 2021	April 30, 2022
Profit	146,840	58,708
Other comprehensive income
Foreign currency translation adjustment	-	17,302
Total other comprehensive income	-	17,302
Comprehensive income	146,840	76,011
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	140,179	91,289
Comprehensive income attributable to non-controlling	6,660	(15,278)
interests

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