[Delayed]Summary of Consolidated Financial Results for the Six Months Ended September 30, 2021

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 September 30, 2021 (Based on Japanese GAAP)

November 4, 2021

Company name:

CUBE SYSTEM INC.

Stock exchange listing:

Tokyo

Stock code:

2335

URL

https://www.cubesystem.co.jp/en/

Representative:

Representative Director and President

Masahiro Nakanishi

Inquiries:

Seniority Corporate Officer,

Hirofumi Kitagaki

TEL

03-5487-6030

President's Office

Scheduled date to file Quarterly Securities Report:

November 10, 2021

Scheduled date to commence dividend payments:

December 2, 2021

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:

Yes

(for institutional investors)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended September 30, 2021 (from April 1, 2021 to September 30, 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 September 30, 2021

8,060

13.8

746

35.1

752

24.6

501

25.3

Six months ended September 30, 2020

7,083

0.2

552

41.0

603

51.7

400

65.5

Earnings per share

Diluted earnings per share

Yen

Yen

Six months ended September 30, 2021

37.00

-

Six months ended September 30, 2020

29.47

-

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

As of September 30, 2021

9,675

6,911

71.0

509.03

As of March 31, 2021

9,444

6,515

68.6

476.52

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 March 31, 2021

-

8.00

-

12.00

20.00

Year ending March 31, 2022

-

8.00

Year ending March 31, 2022 (Forecast)

-

15.00

23.00

3. Forecast of consolidated financial results for the year ending March 31, 2022 (from April 1, 2021 to March 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	16,000	8.2	1,400	19.2	1,420	9.6	950	12.6	66.69

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4. Notes

1. Changes in significant subsidiaries during the six months ended September 30, 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

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 September 30, 2021	14,500,000	shares	As of March 31, 2021	15,279,840	shares
Number of treasury shares at the end of the period
	As of September 30, 2021	1,000,392	shares	As of March 31, 2021	1,689,732	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Six months ended September 30, 2021	13,559,941	shares	Six months ended September 30, 2020	13,588,107	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of March 31, 2021	As of September 30, 2021
Assets
Current assets
Cash and deposits	4,467,541	4,702,966
Accounts receivable-trade and contract assets	2,584,796	2,549,660
Work in process	83,449	21,192
Other	118,578	121,492
Allowance for doubtful accounts	(554)	(495)
Total current assets	7,253,810	7,394,818
Non-current assets
Property, plant and equipment	193,249	175,900
Intangible assets	8,774	6,864
Investments and other assets
Investment securities	1,169,963	1,291,843
Retirement benefit asset	162,786	170,779
Other	655,607	635,278
Total investments and other assets	1,988,358	2,097,901
Total non-current assets	2,190,382	2,280,665
Total assets	9,444,193	9,675,483
Liabilities
Current liabilities
Accounts payable-trade	775,081	756,953
Short-term borrowings	280,000	240,000
Income taxes payable	370,648	279,098
Provision for bonuses	337,488	462,618
Provision for bonuses for directors (and other officers)	36,700	5,125
Provision for loss on order received	-	2,633
Other	557,847	403,872
Total current liabilities	2,357,766	2,150,300
Non-current liabilities
Provision for share-based compensation	228,511	270,789
Asset retirement obligations	138,007	138,282
Other	204,587	204,167
Total non-current liabilities	571,106	613,239
Total liabilities	2,928,872	2,763,540

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			(Thousands of yen)
		As of March 31, 2021	As of September 30, 2021
Net assets
Shareholders' equity
Share capital	768,978	768,978
Capital surplus	826,828	708,018
Retained earnings	5,649,012	5,517,718
Treasury shares	(1,197,851)	(603,331)
Total shareholders' equity	6,046,968	6,391,384
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	336,160	407,396
Foreign currency translation adjustment	428	5,310
Remeasurements of defined benefit plans	92,442	67,668
Total accumulated other comprehensive income	429,032	480,374
Non-controlling interests	39,319	40,183
Total net assets	6,515,320	6,911,942
Total liabilities and net assets	9,444,193	9,675,483

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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
		September 30, 2020	September 30, 2021
Net sales	7,083,596	8,060,499
Cost of sales	5,757,629	6,342,228
Gross profit	1,325,966	1,718,270
Selling, general and administrative expenses
Provision for bonuses for directors (and other officers)	15,753	5,125
Salaries and allowances	207,298	249,099
Provision for bonuses	46,332	73,865
Retirement benefit expenses	14,386	10,001
Provision of allowance for share-based compensation	34,416	42,278
Other	455,081	590,999
Total selling, general and administrative expenses	773,268	971,369
Operating profit	552,698	746,900
Non-operating income
Interest income	1,231	1,290
Dividend income	4,776	4,449
Difference on consumption tax	2,263	4,682
Other	46,550	1,415
Total non-operating income	54,821	11,837
Non-operating expenses
Interest expenses	818	876
Foreign exchange losses	1,438	2,771
Commission expenses	1,554	1,554
Other	14	1,142
Total non-operating expenses	3,825	6,344
Ordinary profit	603,694	752,393
Profit before income taxes	603,694	752,393
Income taxes	201,907	249,083
Profit	401,786	503,309
Profit attributable to non-controlling interests	1,398	1,635
Profit attributable to owners of parent	400,388	501,674

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