Consolidated Financial Results for the First Six Months Period of the Fiscal Year Ending March 31,2022 (Under Japanese GAAP)

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

November 11, 2021

Consolidated Financial Results

for the First Six-Months Period of the Fiscal Year Ending March 31, 2022

(Under Japanese GAAP)

Company name:	MINKABU THE INFONOID INC.
Listing:	Tokyo Mothers
Securities code:	4436
URL:	https://minkabu.co.jp/
Representative:	Ken Uryu, President and CEO
Inquiries:	Ryutaro Takada, Senior Executive Vice President and CFO
Telephone:	[phone]

Scheduled date to file quarterly securities report:	November 11, 2021
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:	Yes (for institutional investors and analysts)

(Yen amounts are rounded down to millions, unless otherwise noted.)

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)			(% indicates changes from the previous corresponding period.)
					Net sales		EBITDA		Operating profit	Ordinary profit	Profit attributable
							to owners of parent
	Six months ended	Million yen		%	Million yen	%		Million yen	%	Million yen	%	Million yen	%
	September	30,	2021		2,427		37.4	623	24.5		304	15.8	265	7.1	149	13.9
	September 30, 2020		1,766		-	501	-		262	-	247	-	131	-
Note: Comprehensive income	For the six months ended September 30, 2021:	¥161 million	(3.0)%
					For the six months ended September 30, 2020:	¥166 million		-%
				Basic earnings	Diluted earnings
					per share			per share
	Six months ended					Yen			Yen
	September 30, 2021				10.28			10.08
	September 30, 2020				9.54			9.36

Notes:

1. Since the quarterly consolidated financial statements have been prepared from the third quarter of the fiscal year ended March 31, 2020, the change in the second quarter of the fiscal year ended March 31, 2021 from the previous corresponding period is not stated. The Company has established a consolidated subsidiary, MINKABU ASSET PARTNERS, Inc., on September 1, 2021.
2. EBITDA is calculated as 'Operating profit + Depreciation + Amortization of goodwill'

(2) Consolidated financial position

		Total assets		Net assets	Equity ratio	Book value per share
		Million yen	Million yen	%	Yen
	September 30, 2021		9,669	7,533	75.2	487.54
	March 31, 2021		6,989	4,215	56.0	283.42
Reference: Equity
	As of September 30, 2021:		¥7,266 million
	As of March 31, 2021:		¥3,916 million

2. Dividends

			Annual dividends per share
	End of first quarter		End of second	End of third quarter		Fiscal year end		Total
		quarter
	Yen		Yen	Yen		Yen		Yen
Fiscal year ended	-	0.00	-		18.00	18.00
March 31, 2021
Fiscal year ending	-	0.00
March 31, 2022
Fiscal year ending
March 31, 2022				-		18.00	18.00
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Earnings Forecast of Consolidated Financial Results for Fiscal Year Ending March 31, 2022 (From April 1, 2021 to March 31, 2022)

(% indicates changes from the previous corresponding period.)

											Net income	Net income
	Net sales		EBITDA		Operating profit	Ordinary profit	attributable to
			per share
											owners of parent
	Million yen		%	Million yen		%	Million yen	%	Million yen	%	Million yen	%	yen
Full year	5,300		27.4	1,680		31.2	1,000	31.7	900	22.6	700	24.0	48.12

Notes:

1. Revisions to the forecast of financial results most recently announced: None
2. EBITDA is calculated as 'Operating profit + Depreciation + Amortization of goodwill'

Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements: Yes

The details are described in "(4) Notes to Quarterly Consolidated Financial Statements (Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements)" under the "2. Quarterly Consolidated Financial Statements and Principal Notes" section on page 10.

1. Changes in accounting policies, changes in accounting estimates, and restatement
2. 1. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
   2. Changes in accounting policies due to other reasons: None
   3. Changes in accounting estimates: None
   4. Restatement: None
3. Number of issued shares (common shares)
4. 1. Total number of issued shares at the end of the period (including treasury shares)

As of September 30, 2021	14,905,100 shares
As of March 31, 2021	13,819,700 shares

(ii) Number of treasury shares at the end of the period

As of September 30, 2021	23 shares
As of March 31, 2021	- shares

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Six months ended September 30, 2021	14,546,760 shares
Six months ended September 30, 2020	13,754,039 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special matters:
  The statements regarding forecast of financial results in this report are based on the information that is available to the Company, as well as certain assumptions that are deemed to be reasonable by management, and they are not meant to be a commitment by the Company. Therefore, there might be cases in which actual results differ materially from forecast values due to various factors.
  For notes on using earnings projections and assumptions for premises thereof, please refer to "(3) Explanation of Forecast of Consolidated Financial Results and Other Forward-Looking Information" under the "1. Qualitative Information on Quarterly Financial Results" section on page 3.
  We plan to hold a financial result briefing for institutional investors and analysts on November 11, 2021. Supplementary materials for financial results will be published on our website on the day of the event.

Table of Contents of Attached Material
1. Qualitative Information on Quarterly Financial Results -------------------------------------------------------	2
(1)	Results of Operations--------------------------------------------------------------------------------------------	2
(2)	Financial Position ------------------------------------------------------------------------------------------------	2
(3)	Forecast of Consolidated Financial Results and Other Forward-Looking Information ----------------	4
2．Quarterly Consolidated Financial Statements and Principal Notes -------------------------------------------	5
(1)	Quarterly Consolidated Balance Sheets-----------------------------------------------------------------------	5
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income ----------------------------	7
	(Quarterly Consolidated Statements of Income)-------------------------------------------------------------	7
	(Quarterly Consolidated Statements of Comprehensive Income) -----------------------------------------	8
(3)	Quarterly Consolidated Statement of Cash Flows-----------------------------------------------------------	9
(4)	Notes to Quarterly Consolidated Financial Statements---------------------------------------------------	10
	(Notes to Going Concern Assumption) ---------------------------------------------------------------------	10
	(Notes to Significant Changes in the Amount of Shareholders' Equity) -------------------------------	10
	(Changes in major subsidiaries during the period) -------------------------------------------------------	10
	(Adoption of Accounting Treatment Specific to Quarterly Consolidated Financial Statements) ---	10
	(Changes in Accounting Policies)----------------------------------------------------------------------------	10
	(Additional Information) --------------------------------------------------------------------------------------	11
	(Segment Information) ----------------------------------------------------------------------------------------	11

1. Qualitative Information on Quarterly Financial Results

1. Explanation of Results of Operations

On a consolidated basis, the Company raised 2,427,292 thousand yen in sales (37.4% increase YoY), 304,312 thousand yen in operating profit (15.8% increase YoY), 265,166 thousand yen in ordinary profit (7.1% increase YoY), and 149,539 thousand yen in net profit attributable to shareholders of the parent company (13.9% increase YoY), for the second quarter of the current fiscal year. The Company also raised 623,943 thousand yen (24.5% increase YoY) in EBITDA (operating profit + depreciation and amortization + amortization of goodwill), which is one of important measurements the Company thinks for its continuous growth. Both the media segment and solution segment showed steady growth and ales and profits increased year on year, offsetting the temporary inherent expenses (acceleration depreciation of existing facilities associated with the relocation of the new office in general and administrative expenses and financing costs for the capital and business alliance with QUICK Corp. and Nikkei Inc. in non- operating expenses).

Performance by business segment is as follows. The Company acquired shares of Robot Fund Co., Ltd., a SaaS-based information vendor specializing in investment trusts and made it a consolidated subsidiary in the first quarter of the previous fiscal year. Since the acquisition of shares was at the end of the first quarter of the previous fiscal year, the income statement of Robot Fund Co., Ltd. has been consolidated since July 1, 2020. In addition, the Company established MINKABU ASSET PARTNERS, Inc. on September 1, 2021, as a preparation company for registration of financial instruments intermediary service provider for the purpose of developing IFA business for asset builders.

(Media)

The media business records advertisement revenue from information media of "MINKABU," an asset building information media, "Kabutan," a stock information specialized media, and those services which the Company operates through business alliances. The media business also records billing services revenue. For the second quarter of the current fiscal year, the total monthly average unique users of media sites the Company operates increased by 330 thousand YoY to 9.1 million, and visitors increased by 2.29 million and to reach 28.44 million. Following the rebranding of "MINKABU," and the release of the U.S. stock version of "Kabutan" during the first quarter of the current fiscal year, asset management tool "MINKABU ASSET PLANNER," the first subscription service of "MINKABU," was released in this second quarter.

In advertising revenue, pure advertising remained firm and continuous use of listing advertising (advertising promotion) contributed to the expansion of sales. As for billing revenue, "Kabutan Premium," two new services added U.S. stock version and bundled version of Japanese and U.S. stocks on June 2021, contributed to earnings, with an increase of the number of subscribers and shift of users to the bundled version, which has a higher monthly usage fee. The "MINKABU ASSET PLANNER" released on August 28, 2021, records revenue from September.

As a result, consolidated sales of six-months cumulative period of the current fiscal year was 1,034,795 thousand yen (58.0% increase YoY), and segment profit was 322,298 thousand yen (28.5% increase YoY).

(Solution)

The solution business includes revenues from AI driven software content utilized the know-how of the media business and initial and monthly fee of ASP services providing information based fintech solution content assembled from crowd inputs of media sites the Company operates. During the second quarter of the current fiscal year, revenues expanded due to the continuous organic growth, including initial/temporary sales of installation projects.

As a result, consolidated sales of six-months cumulative period of the current fiscal year was 1,399,668 thousand yen (25.4% increase YoY), and segment profit was 300,103 thousand yen (21.8% increase YoY).

1. Explanation of Financial Position Assets, Liabilities and Net Assets (Assets)
   Current assets at the end of the second quarter of the current fiscal year was 5,050,682 thousand yen with an increase of 2,175,471 thousand yen from the end of the previous fiscal year. This was mainly due to a decrease of accounts receivable by 226,382 thousand yen, while cash and deposits increased 2,407,249 thousand yen with new shares being issued through the third-party allotment to QUICK Corp. and Nikkei Inc.
2. • 2 -