Japan Living Warranty : 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)

					February 10, 2022
Company name:	Japan Living Warranty Inc.
Stock exchange listing:	Tokyo
Stock code:	7320	URL https://jlw.jp
Representative:	Representative director and president	Yoshitaka Adachi
Inquiries:	Director, General Manager of Administration	Atsushi Yoshikawa	TEL [phone]
	Headquarters
Scheduled date to file Quarterly Securities Report:	February 10, 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 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	1,608		34.6		467		191.6		524		119.2		355		127.9
Six months ended December 31, 2020	1,195		-		160		-		239			-		156		-
	Earnings per share		Diluted earnings per share
			Yen						Yen
Six months ended December 31, 2021			71.05						70.20
Six months ended December 31, 2020			31.18						30.53
(2) Consolidated financial position
	Total assets				Net assets		Equity ratio
	Millions of yen			Millions of yen					%
As of December 31, 2021		15,292						1,125					7.4
As of June 30, 2021		14,469						779					5.4
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		-			0.00				-				10.00			10.00
Year ending June 30, 2022		-			0.00
Year ending June 30, 2022 (Forecast)										-				10.00			10.00

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	3,200	21.9	700	83.3	800	74.6	530	117.9	105.89

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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	5,058,300	shares	As of June 30, 2021	5,058,300	shares
Number of treasury shares at the end of the period
	As of December 31, 2021	50,262	shares	As of June 30, 2021	56,175	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended December 31, 2021	5,005,161	shares	Six months ended December 31, 2020	5,004,147	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	5,547,736	4,050,867
Accounts receivable - trade	55,872	58,917
Securities	125,052	161,184
Money held in trust	199,902	199,902
Prepaid expenses	346,311	388,390
Advances paid	751,332	1,037,349
Other	286,899	807,648
Total current assets	7,313,106	6,704,260
Non-current assets
Property, plant and equipment	310,679	554,426
Intangible assets	139,645	170,532
Investments and other assets
Investment securities	964,329	1,055,727
Investments in capital	200,010	100,010
Guarantee deposits	1,165,095	785,095
Long-term prepaid expenses	2,111,791	2,226,011
Investment property, net	1,900,882	3,268,828
Other	363,289	426,630
Total investments and other assets	6,705,397	7,862,303
Total non-current assets	7,155,723	8,587,261
Deferred assets	517	517
Total assets		14,469,346	15,292,039

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			(Thousands of yen)
		As of June 30, 2021	As of December 31, 2021
Liabilities
Current liabilities
Accounts payable - trade	74,701	67,245
Current portion of long-term borrowings	33,880	53,272
Income taxes payable	222,602	179,458
Unearned revenue	1,193,301	1,378,803
Deposits received	1,508,352	467,777
Provision for bonuses	79,700	27,879
Provision for bonuses for directors (and other officers)	20,000	-
Other	324,726	181,455
Total current liabilities	3,457,265	2,355,892
Non-current liabilities
Long-term borrowings	619,001	1,004,205
Long-term unearned revenue	5,693,016	6,425,132
Long-term deposits received	3,873,866	4,323,039
Provision for point card certificates	6,322	5,759
Other	40,554	52,829
Total non-current liabilities	10,232,760	11,810,966
Total liabilities	13,690,025	14,166,858
Net assets
Shareholders' equity
Share capital	211,826	211,826
Capital surplus	186,826	190,722
Retained earnings	445,766	751,373
Treasury shares	(120,382)	(107,748)
Total shareholders' equity	724,036	1,046,174
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	55,284	79,007
Total accumulated other comprehensive income	55,284	79,007
Total net assets	779,321	1,125,181
Total liabilities and net assets		14,469,346	15,292,039

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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	1,195,471	1,608,961
Cost of sales	491,030	494,910
Gross profit	704,440	1,114,051
Selling, general and administrative expenses	544,062	646,326
Operating profit	160,378	467,724
Non-operating income
Interest income	3,552	7,786
Dividend income	115	-
Rental income from investment property	35,861	68,607
Gain on sale of securities	53,773	-
Other	9,378	17,160
Total non-operating income	102,680	93,553
Non-operating expenses
Interest expenses	978	3,215
Rent expenses of real estate for investment	22,464	28,902
Other	213	4,354
Total non-operating expenses	23,656	36,472
Ordinary profit	239,401	524,806
Profit before income taxes	239,401	524,806
Income taxes	83,323	169,177
Profit	156,078	355,628
Profit attributable to owners of parent		156,078	355,628

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