Elan : Summary of Consolidated Financial Results for the Six Months Ended June 30, 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 June 30, 2022
		(Based on Japanese GAAP)
					August 10, 2022
Company name:	ELAN Corporation
Stock exchange listing:	Tokyo
Stock code:	6099	URL https://www.kkelan.com/
Representative:	COO		Minezaki Tomohiro
Inquiries:	Executive Officer, IR Office Manager	Hideo Hara	TEL [phone]
Scheduled date to file Quarterly Securities Report:	August 12, 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, analysts and general investors)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended June 30, 2022 (from January 1, 2022 to June 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	%
Six months ended June 30, 2022	17,604		15.7		1,713		22.1		1,725		22.0			1,177	23.2
Six months ended June 30, 2021	15,218		25.1		1,403		42.4		1,414		42.7			956	43.8
	Earnings per share		Diluted earnings per share
			Yen						Yen
Six months ended June 30, 2022			19.48						-
Six months ended June 30, 2021			15.78						-
(2) Consolidated financial position
	Total assets				Net assets		Equity ratio			Net assets per share
	Millions of yen			Millions of yen				%				Yen
As of June 30, 2022		14,076						8,126				57.7				134.41
As of December 31, 2021		13,947						7,483				53.7				123.78
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 December 31, 2021		-			0.00				-				9.00		9.00
Year ending December 31, 2022		-			0.00
Year ending December 31, 2022 (Forecast)										-			10.00		10.00

3. Forecast of consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 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	37,000	17.0	3,000		7.2	3,020		7.1	2,000		4.9	33.08

1

4. Notes

1. Changes in significant subsidiaries during the six months ended June 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:

No

No

(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 June 30, 2022	60,600,000	shares	As of December 31, 2021	60,600,000	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	138,869	shares	As of December 31, 2021	140,969	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended June 30, 2022	60,459,460	shares	Six months ended June 30, 2021	60,574,090	shares

2

Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2021	As of June 30, 2022
Assets
Current assets
Cash and deposits	5,632,051	5,171,295
Accounts receivable - trade	3,891,204	-
Accounts receivable - trade, and contract assets	-	3,973,222
Merchandise	1,068,647	912,670
Supplies	11,640	5,569
Accounts receivable - other	1,957,416	2,244,940
Other	55,927	70,612
Allowance for doubtful accounts	(486,903)	(485,183)
Total current assets	12,129,983	11,893,126
Non-current assets
Property, plant and equipment	341,085	484,336
Intangible assets
Goodwill	9,771	-
Other	95,650	92,746
Total intangible assets	105,421	92,746
Investments and other assets
Other	1,460,628	1,666,589
Allowance for doubtful accounts	(89,318)	(60,698)
Total investments and other assets	1,371,309	1,605,891
Total non-current assets	1,817,816	2,182,973
Total assets	13,947,800	14,076,100
Liabilities
Current liabilities
Accounts payable - trade	4,868,493	4,692,738
Income taxes payable	610,067	523,016
Other	938,502	671,991
Total current liabilities	6,417,063	5,887,746
Non-current liabilities
Provision for share awards	13,858	16,015
Provision for share awards for directors (and other	31,417	44,829
officers)
Other	1,737	1,085
Total non-current liabilities	47,013	61,931
Total liabilities	6,464,077	5,949,677
Net assets
Shareholders' equity
Share capital	573,496	573,496
Capital surplus	543,496	543,496
Retained earnings	6,574,561	7,207,034
Treasury shares	(197,189)	(194,237)
Total shareholders' equity	7,494,363	8,129,790
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	(10,640)	(3,367)
Total accumulated other comprehensive income	(10,640)	(3,367)
Total net assets	7,483,722	8,126,423
Total liabilities and net assets		13,947,800	14,076,100

3

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
		June 30, 2021	June 30, 2022
Net sales	15,218,053	17,604,155
Cost of sales	11,408,962	13,149,190
Gross profit	3,809,090	4,454,965
Selling, general and administrative expenses	2,405,853	2,741,429
Operating profit	1,403,236	1,713,536
Non-operating income
Gain on sale of non-current assets	583	154
Subsidy income	2,830	-
Late charges income	8,022	6,463
Gain on investments in investment partnerships	-	240
Consulting fee income	-	2,100
Other	2,803	3,305
Total non-operating income	14,239	12,264
Non-operating expenses
Loss on retirement of non-current assets	1,447	-
Other	1,367	-
Total non-operating expenses	2,814	-
Ordinary profit	1,414,661	1,725,800
Profit before income taxes	1,414,661	1,725,800
Income taxes - current	430,237	515,369
Income taxes - deferred	28,291	32,566
Total income taxes	458,529	547,935
Profit	956,131	1,177,865
Profit attributable to non-controlling interests	-	-
Profit attributable to owners of parent		956,131	1,177,865

4

Consolidated statements of comprehensive income (cumulative)

		(Thousands of yen)
	Six months ended	Six months ended
	June 30, 2021	June 30, 2022
Profit	956,131	1,177,865
Other comprehensive income
Valuation difference on available-for-sale securities	7,033	7,273
Total other comprehensive income	7,033	7,273
Comprehensive income	963,164	1,185,138
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	963,164	1,185,138
Comprehensive income attributable to non-controlling	-	-
interests

5