Advance Create : Summary of Consolidated Financial Results for the Three Months Ended December 31, 2020 (Based on Japanese GAAP)

4. Notes

• (1) Changes in significant subsidiaries during the three months ended December 31, 2020

  No

  (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

• (3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statementsChanges in accounting policies due to revisions to accounting standards and other regulations: Changes in accounting policies due to other reasons:

Changes in accounting estimates:

Restatement of prior period financial statements:

No No No 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, 2020 11,058,000 shares As of September 30, Number of treasury shares at the end of the period

As of December 31, 2020 11,058,000 shares

As of September 30, 2020 11,037,600 shares

As of December 31, 2020 292,939 shares As of September 30, 202 Average number of shares during the period (cumulative from the beginning of the fiscal year)

As of December 31, 2020 292,939 shares

As of September 30, 2020 300,239 shares

Three months ended December 31, 2020 10,751,427 shares

Three months ended December 31, 2019 10,333,072 shares

Three months ended December 31, 2020

10,751,427 shares Three months ended December 31, 2019

10,333,072 shares

Quarterly consolidated financial statements Consolidated balance sheets

(Thousands of yen)
As of September 30, 2020	As of December 31, 2020
Assets Current assets Cash and deposits Notes and accounts receivable - trade Accounts receivable - other Income taxes receivable Other	2,632,288 1,099,522 2,120,899 15,225 695,462	1,953,998 1,153,959 2,028,978 15,225 823,504
Total current assets	6,563,398	5,975,665
Non-current assets Property, plant and equipment Intangible assets Software Other	617,172 518,631 167,744	598,157 601,294 109,011
Total intangible assets	686,376	710,305
Investments and other assets Investment securities Guarantee deposits Insurance funds Deferred tax assets Other	351,506 678,655 716,258 271,683 403,056	366,899 691,057 716,258 233,118 401,333
Total investments and other assets	2,421,161	2,408,666
Total non-current assets	3,724,710	3,717,130
Deferred assets	24,688	23,003
Total assets	10,312,797	9,715,799
Liabilities Current liabilities Current portion of bonds payable Income taxes payable Accounts payable - other Deposits received Lease obligations Provision for bonuses Asset retirement obligations Other	200,000 106,616 1,087,762 410,212 80,116 183,305 6,777 623,855	200,000 40,416 992,345 433,090 78,358 92,159 20,758 476,671
Total current liabilities	2,698,647	2,333,798
Non-current liabilities Long-term borrowings Bonds payable Lease obligations Retirement benefit liability Asset retirement obligations Other	127,630 800,000 369,609 356,206 214,016 136,594	127,630 700,000 355,265 365,004 205,125 142,855
Total non-current liabilities	2,004,057	1,895,879
Total liabilities	4,702,704	4,229,678
(Thousands of yen)
As of September 30, 2020	As of December 31, 2020
Net assets Shareholders' equity Share capital Capital surplus Retained earnings Treasury shares	2,954,496 381,117 2,586,305 (443,976)	2,973,184 399,805 2,401,903 (430,634)
Total shareholders' equity	5,477,943	5,344,258
Accumulated other comprehensive income Valuation difference on available-for-sale securities	128,534	138,552
Total accumulated other comprehensive income	128,534	138,552
Share acquisition rights	3,615	3,309
Total net assets	5,610,092	5,486,120
Total liabilities and net assets	10,312,797	9,715,799

(430,634)

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

(cumulative)

Consolidated statements of income (cumulative)

(Thousands of yen)
Three months ended December 31, 2019	Three months ended December 31, 2020
Net sales Cost of sales	2,638,828 781,430	2,573,540 736,908
Gross profit	1,857,398	1,836,632
Selling, general and administrative expenses	1,562,293	1,621,218
Operating profit	295,104	215,413
Non-operating income Interest and dividend income Gain on forfeiture of unclaimed dividends Guarantee commission received Other	826 498 2,045 696	778 414 2,045 402
Total non-operating income	4,066	3,641
Non-operating expenses Interest expenses Guarantee commission Commission expenses Other	3,015 - 17,855 -	2,189 375 27,952 1,844
Total non-operating expenses	20,870	32,362
Ordinary profit	278,299	186,692
Extraordinary income Gain on reversal of share acquisition rights	400	-
Total extraordinary income	400	-
Extraordinary losses Loss on retirement of non-current assets Loss on store closings	- -	3,224 19,459
Total extraordinary losses	-	22,684
Profit before income taxes	278,699	164,008
Income taxes - current Income taxes - deferred	63,776 37,831	34,345 36,780
Total income taxes	101,607	71,126
Profit	177,091	92,881
Profit attributable to owners of parent	177,091	92,881

Consolidated statements of comprehensive income (cumulative)

(Thousands of yen)
Three months ended December 31, 2019	Three months ended December 31, 2020
Profit 177,091 Other comprehensive income Valuation difference on available-for-sale securities 14,584	92,881 10,018
Total other comprehensive income 14,584	10,018
Comprehensive income 191,676	102,899
Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to non-controlling interests 191,676 -	102,899 -