Computer Institute of Japan : Summary of Consolidated Financial Results for the Six Months Ended December 31, 2021 (Based on 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 Six Months Ended December 31, 2021 (Based on Japanese GAAP)

January 27, 2022

Company name:

Computer Institute of Japan, Ltd.

Stock exchange listing:

Tokyo

Stock code:

4826

URL

https://www.cij.co.jp/

Representative:

President and Chief Executive Officer

Akihiko Sakamoto

Inquiries:

Executive Officer Management Planning

Takashi Morita

TEL

045-222-0555

Dept. Manager

Scheduled date to file Quarterly Securities Report:

February 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 analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended December 31, 2021 (from July 1, 2021 to December 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

%

Six months ended December 31, 2021

10,374

5.1

739

8.5

757

12.3

375

(18.4)

Six months ended December 31, 2020

9,873

(1.4)

681

(7.7)

675

(5.0)

459

(2.6)

Note: Comprehensive income: FY2022

Q2 365 million yen (24.0%) FY2021 Q2 481 million yen (0.6%)

Earnings per share

Diluted earnings per share

Yen

Yen

Six months ended December 31, 2021

22.82

-

Six months ended December 31, 2020

27.66

-

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

%

As of December 31, 2021

16,119

13,157

81.6

As of June 30, 2021

16,251

13,104

80.6

Note: Equity: FY2022 Q2 13,157 million

yen FY2021 13,104 million yen

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 June 30, 2021

-

-

-

23.00

23.00

Year ending June 30, 2022

-

-

Year ending June 30, 2022 (Forecast)

-

24.00

24.00

Note: Revisions to the forecasts of dividends: No

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

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Yen

Full year

21,000

3.0

1,200

(13.5)

1,200

(14.1)

820

(11.0)

49.79

Note: Revisions to

the forecasts of consolidated financial results: No

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4. Notes

1. Changes in significant subsidiaries during the six months ended December 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 December 31, 2021	18,555,080	shares	As of June 30, 2021	18,555,080	shares
Number of treasury shares at the end of the period
	As of December 31, 2021	2,059,304	shares	As of June 30, 2021	2,121,830	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended December 31, 2021	16,448,434	shares	Six months ended December 31, 2020	16,628,581	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of June 30, 2021	As of December 31, 2021
Assets
Current assets
Cash and deposits	7,132,053	6,727,390
Accounts receivable - trade	3,762,447	-
Notes and accounts receivable - trade, and contract assets	-	3,597,730
Securities	1,900,030	1,111,998
Merchandise and finished goods	1,400	1,265
Work in process	25,404	29,642
Other	262,547	274,319
Total current assets	13,083,883	11,742,345
Non-current assets
Property, plant and equipment
Buildings and structures, net	115,816	393,655
Land	38,576	262,035
Construction in progress	78,224	1,325
Other, net	41,573	91,463
Accumulated impairment	-	(23,138)
Total property, plant and equipment	274,191	725,339
Intangible assets
Goodwill	45,747	496,502
Other	463,157	474,845
Total intangible assets	508,905	971,348
Investments and other assets
Investment securities	1,439,790	1,591,376
Other	945,660	1,090,137
Allowance for doubtful accounts	(766)	(794)
Total investments and other assets	2,384,685	2,680,719
Total non-current assets	3,167,782	4,377,407
Total assets		16,251,666	16,119,753

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			(Thousands of yen)
		As of June 30, 2021	As of December 31, 2021
Liabilities
Current liabilities
Accounts payable - trade	707,913	696,540
Short-term borrowings	560,000	300,008
Income taxes payable	271,643	239,906
Provision for bonuses	433,419	430,998
Provision for loss on order received	424	-
Other	1,115,205	1,229,696
Total current liabilities	3,088,606	2,897,150
Non-current liabilities
Retirement benefit liability	52,671	48,858
Other	6,245	16,323
Total non-current liabilities	58,916	65,181
Total liabilities	3,147,522	2,962,331
Net assets
Shareholders' equity
Share capital	2,270,228	2,270,228
Capital surplus	2,463,693	2,486,227
Retained earnings	9,543,037	9,540,376
Treasury shares	(1,241,655)	(1,198,889)
Total shareholders' equity	13,035,303	13,097,943
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	68,840	60,589
Foreign currency translation adjustment	-	(1,111)
Total accumulated other comprehensive income	68,840	59,478
Total net assets	13,104,143	13,157,421
Total liabilities and net assets		16,251,666	16,119,753

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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
		December 31, 2020	December 31, 2021
Net sales	9,873,440	10,374,999
Cost of sales	8,028,075	8,365,759
Gross profit	1,845,365	2,009,239
Selling, general and administrative expenses
Remuneration for directors (and other officers)	149,330	141,253
Salaries and allowances	345,638	363,075
Provision for bonuses	41,014	46,284
Welfare expenses	83,857	92,157
Rent expenses	102,999	106,919
Depreciation	59,154	64,485
Commission expenses	77,239	74,141
Offering expenses	19,434	11,657
Taxes and dues	66,261	73,169
Research and development expenses	53,029	60,436
Amortization of goodwill	9,149	44,526
Other	156,647	191,839
Total selling, general and administrative expenses	1,163,755	1,269,947
Operating profit	681,609	739,291
Non-operating income
Interest income	7,277	6,263
Dividend income	2,653	7,773
Subsidy income	135	333
Other	2,564	15,449
Total non-operating income	12,631	29,820
Non-operating expenses
Interest expenses	467	1,146
Commission for purchase of treasury shares	1,992	-
Amortization of long-term prepaid expenses	9,385	8,201
Other	7,149	1,764
Total non-operating expenses	18,995	11,113
Ordinary profit	675,246	757,999
Extraordinary income
Gain on sale of investment securities	-	17,228
Gain on liquidation of investment securities	6,724	-
Other	293	-
Total extraordinary income	7,017	17,228
Extraordinary losses
Office relocation expenses	-	158,617
Impairment losses	-	24,248
Total extraordinary losses	-	182,866
Profit before income taxes	682,263	592,361
Income taxes	222,207	217,056
Profit	460,055	375,304
Profit attributable to non-controlling interests	95	-
Profit attributable to owners of parent		459,960	375,304

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