SHIKIGAKU : Consolidated Financial Results for the Nine Months Ended November 30, 2021

Note:This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results

for the Nine Months Ended November 30, 2021

[Japanese GAAP]

December 30, 2021

Company name: SHIKIGAKU. Co.,Ltd.

Stock exchange listing: Tokyo
Code number: 7049
URL: https://corp.shikigaku.jp/
Representative: Koudai Ando	President and Representative Director
Contact: Daisuke Sasaki	Director
Phone: [phone]

Scheduled date of filing quarterly securities report: January 14, 2022

Scheduled date of commencing dividend payments: -

Availability of supplementary briefing material on quarterly financial results: Yes

Schedule of quarterly financial results briefing session: Yes

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Nine Months Ended November 30, 2021 (March 01, 2021 to November 30, 2021)

(1) Consolidated Operating Results				(% indicates changes from the previous corresponding period.)
	Net sales	EBITDA	Operating profit	Ordinary profit	Profit attributable
	to owners of parent
Nine months ended	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Million yen	%
November 30, 2021	2,808	65.6	330	305.4	277	657.7	263	134.1	141	-
November 30, 2020	1,696	35.4	81	(67.0)	36	(83.3)	112	(48.9)	(79)	-

(Note) Comprehensive income:	Nine months ended November 30, 2021:	¥	322 million	[	-%]
		Nine months ended November 30, 2020:	¥	(30) million	[	-%]
		Basic earnings	Diluted earnings per
		per share	share
Nine months ended		Yen		Yen
November 30, 2021		18.59		17.77
November 30, 2020		(10.70)		-

(2) Consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio
As of	Million yen		Million yen	%
November 30, 2021	3,768		2,370	53.1
February 28, 2021	2,392		1,138	37.5
(Reference) Equity: As of	November 30, 2021:	¥	2,000 million
As of	February 28, 2021:	¥	897 million

2. Dividends

					Annual dividends
		1st	2nd		3rd		Year-end	Total
	quarter-end	quarter-end	quarter-end
		Yen		Yen	Yen		Yen	Yen
Fiscal year ended February 28, 2021		-		0.00	-		0.00	0.00
Fiscal year ending February 28, 2022		-		0.00	-
Fiscal year ending February 28, 2022							0.00	0.00
(Forecast)
(Note) Revision to the forecast for dividends	announced most	recently:	No
(Note) Breakdown of the 3rd quarter dividend for the fiscal year ending February 28, 2022 :
Commemorative dividend	-	yen
Special dividend	-	yen

3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 28, 2022(March 01, 2021 to February 28, 2022)

(% indicates changes from the previous corresponding period.)

Profit

Basic earnings

Net sales

EBITDA

Operating profit

Ordinary profit

attributable to

per share

owners of parent

Million

Million

Million

Million

Million

yen

%

yen

%

yen

%

yen

%

yen

%

Yen

Full year

3,798

51.6

470

136.2

400

191.2

353

77.4

153

-

20.33

(Note) Revision to the financial results forecast announced most recently:

No

* Notes:

(1) Changes in significant subsidiaries during the nine months ended November 30, 2021

(changes in specified subsidiaries resulting in changes in scope of consolidation):

Yes

New

１

(Company name: SHIKIGAKU No.2 Investment Partnership

)

Exclusion:

-

(Company name:

)

(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements:

Yes

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: No
   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):

November 30, 2021:	8,048,600	shares
February 28, 2021:	7,534,500	shares
2) Total number of treasury shares at the end of the period:
November 30, 2021:	59,671	shares
February 28, 2021:	59,632	shares

3) Average number of shares during the period:
Nine months ended November 30, 2021:	7,614,269	shares
Nine months ended November 30, 2020:	7,407,884	shares

Quarterly Consolidated Financial Statements

Quarterly Consolidated Balance Sheets

					(Thousand yen)
				As of February 28,2021	As of November 30,2021
Assets
	Current assets
		Cash and deposits	1,243,050	2,409,144
		Accounts receivable - trade	288,919	305,766
		Operational investment securities	-	52,500
		Merchandise	18,933	18,824
		Supplies	1,514	2,482
		Other	121,847	156,851
		Allowance for doubtful accounts	(6,671)	(5,470)
		Total current assets	1,667,594	2,940,098
	Non-current assets
		Property, plant and equipment	80,908	108,264
		Intangible assets
			Goodwill	153,422	119,311
			Other	40,678	83,787
			Total intangible assets	194,100	203,099
		Investments and other assets
			Investment securities	236,737	265,312
			Other	213,210	251,605
			Allowance for doubtful accounts	(150)	(200)
			Total investments and other assets	449,798	516,717
		Total non-current assets	724,807	828,082
	Total assets	2,392,402	3,768,180
Liabilities
	Current liabilities
		Accounts payable - trade	24,149	17,260
		Short-term borrowings	100,000	-
		Current portion of long-term borrowings	145,186	146,046
		Income taxes payable	47,775	161,116
		Provision for bonuses	3,312	23,408
		Advances received	189,152	261,013
		Other	359,199	508,482
		Total current liabilities	868,775	1,117,326
	Non-current liabilities
		Long-term borrowings	384,834	274,472
		Other	-	6,067
		Total non-current liabilities	384,834	280,539
	Total liabilities	1,253,609	1,397,866
Net assets
	Shareholders' equity
		Share capital	267,978	729,621
		Capital surplus	336,922	798,565
		Retained earnings	337,498	507,969
		Treasury shares	(45,041)	(45,124)
		Total shareholders' equity	897,356	1,991,032
	Accumulated other comprehensive income
		Valuation difference on available-for-sale	-	9,184
		securities
		Total accumulated other comprehensive income	-	9,184
	Share acquisition rights	600	3,934
	Non-controlling interests	240,836	366,163
	Total net assets	1,138,792	2,370,314
Total liabilities and net assets	2,392,402	3,768,180

Quarterly Consolidated Statements of Income and Comprehensive Income

Quarterly Consolidated Statements of Income (For the nine months)

			(Thousand yen)
		For the nine months	For the nine months
		ended November 30,2020	ended November 30,2021
Net sales	1,696,048	2,808,198
Cost of sales	393,811	799,619
Gross profit	1,302,236	2,008,579
Selling, general and administrative expenses	1,265,604	1,731,013
Operating profit	36,631	277,565
Non-operating income
	Interest income	5	7
	Commission income	-	721
	Subsidy income	7,307	7,633
	Gain on sales of investment securities	71,502	-
	Gain on investments in investment partnerships	-	3,331
	Other	493	1,852
	Total non-operating income	79,308	13,547
Non-operating expenses
	Interest expenses	2,553	3,715
	Share issuance costs	128	3,429
	Share of loss of entities accounted for using equity	-	20,108
	method
	Loss on investments in investment partnerships	464	-
	Other	390	701
	Total non-operating expenses	3,536	27,954
Ordinary profit	112,403	263,158
Extraordinary income
	Gain on sales of investment securities	-	217,321
	Gain on sales of shares of subsidiaries and associates	-	8,921
	Total extraordinary income	-	226,242
Extraordinary losses
	Impairment loss	109,058	-
	Total extraordinary losses	109,058	-
Profit before income taxes	3,344	489,401
Income taxes	34,117	187,504
Profit (loss)	(30,772)	301,896
Profit attributable to non-controlling interests	48,467	160,327
Profit (loss) attributable to owners of parent	(79,240)	141,569

Quarterly Consolidated Statements of Comprehensive Income (For the nine months)

			(Thousand yen)
		For the nine months	For the nine months
		ended November 30,2020	ended November 30,2021
Profit (loss)	(30,772)	301,896
Other comprehensive income
	Valuation difference on available-for-sale securities	-	20,918
	Total other comprehensive income	-	20,918
Comprehensive income	(30,772)	322,815
Comprehensive income attributable to
	Comprehensive income attributable to owners of	(79,240)	150,754
	parent
	Comprehensive income attributable to non-controlling	48,467	172,060
	interests