Net Marketing : Summary of Non-consolidated Financial Results for the First Quarter 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 Non-consolidated Financial Results for the First Quarter Ended September 30, 2021

(Based on Japanese Accounting Standards)

	November 11, 2021
Company Name:	Net Marketing Co. Ltd.
Stock Exchange Listing:	Tokyo Stock Exchange
Code Number:	6175
URL:	https://www.net-marketing.co.jp/
Representative:	Kunihisa Miyamoto, Representative Director and CEO
Contact:	Koji Mimura, Director and CFO
(TEL)	[phone]

Scheduled date to submit the quarterly report:	November 12, 2021
Scheduled date of the start of dividend payments:	‒
Supplementary documents for quarterly results:	Yes
Quarterly results briefing:	None
	(Amounts of less than one million yen are rounded down.)

1. Financial Results for the First Quarter Ended September 30, 2021 (from July 1, 2021 to September 30, 2021)

(1) Financial Results							(Percentages show year-on-year changes.)
	Net sales		Operating income	Ordinary income	Net income
	Million yen		%	Million yen		%	Million yen	%	Million yen		%
First quarter ended	1,312		-	257		-	260	-	217		-
September 30, 2021
First quarter ended	3,447		(19.0)	211		(48.0)	219	(46.5)	150		(46.8)
September 30, 2020
	Net income		Diluted net income
	per share		per share
			Yen			Yen
First quarter ended			14.54			14.46
September 30, 2021
First quarter ended			10.15			10.00
September 30, 2020

Because the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29), and other regulations have been applied from the beginning of the fiscal year ending June 30, 2022, year-on-year changes in the aforementioned net sales, operating income, ordinary income and net income are not stated.

(2) Financial Position
		Total assets	Net assets	Ratio of shareholders'
		equity to total assets
		Million yen	Million yen	%
As of September 30, 2021		5,354	3,141	58.7
As of June 30, 2021		5,321	3,012	56.6
(Reference) Shareholders' equity:		As of September 30, 2021:	3,141 million yen
			As of June 30, 2021:	3,012 million yen

2. Dividends

			Dividends per share
	End of 1st quarter	End of 2nd quarter	End of 3rd quarter	Year end	Annual
	Yen	Yen	Yen	Yen	Yen
Year ended June 30, 2021	-	0.00	-	6.00	6.00
Year ending June 30, 2022	-
Year ending June 30, 2022		0.00	-	6.00	6.00
(forecast)
(Note) Revisions to dividend forecasts published most recently: No

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3. Financial Results Forecasts for the Fiscal Year Ending June 30, 2022 (from July 1, 2021 to June 30, 2022)

(Percentages show year-on-year changes.)

	Net sales		Operating income	Ordinary income		Net income		Net income
				per share
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Year ending June 30, 2022	5,785	-	500	-	500	-	375	-	25.11

(Note) Revisions to results forecasts published most recently: No

Because the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29), and other regulations have been applied from the beginning of the fiscal year ending June 30, 2022, the financial results forecasts above reflect the application of the Accounting Standard and other regulations. Therefore, year-on-year changes are not stated.

* NOTE

1. Application of Particular Accounting Treatment Concerning Preparation of Quarterly Financial Statements: None
2. Changes in Accounting Principles, Changes in Accounting Estimates, and Retrospective Restatements
3. 1. Changes in accounting principles accompanying the amendment of accounting standards: Yes
   2. Changes other than those in (i) above: None
   3. Changes in accounting estimates: None
   4. Retrospective restatements: None
4. Number of Shares Issued (Common shares)
5. 1. Number of shares issued at the end of the period (including treasury stock)

As of September 30, 2021:	14,940,200 shares
As of June 30, 2021:	14,934,800 shares
(ii) Number of treasury stock at the end of the period
As of September 30, 2021:	188 shares
As of June 30, 2021:	188 shares
(iii) Average number of shares issued during the period
First three months ended September 30, 2021:	14,938,212 shares
First three months ended September 30, 2020:	14,831,528 shares

• The summaries of financial results are positioned outside the scope of a quarterly review by certified public accountants and audit firm.
• Explanations Regarding the Appropriate Use of Financial Results Forecasts and Other Items Worthy of Special Mention Forward-Looking Statements>
  Forward-looking statements in this summary, such as financial results forecasts, are based on information available to the Company at present and certain assumptions the Company judges to be rational. Those descriptions do not mean that the Company promises their achievement. Actual financial results and the like may also differ significantly from those descriptions depending on various factors.

The Company will publish quarterly supplementary materials for explaining the financial results through the Company Announcements Disclosure Service of the Tokyo Stock Exchange and on its official website on Thursday, November 11, 2021.

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Quarterly Financial Statements

(1) Quarterly Balance Sheets

(Unit: Thousand yen)

		Previous fiscal year		End of first quarter of the fiscal
			year under review
		(As of June 30, 2021)
			(As of September 30, 2021)
	Assets
	Current assets
	Cash and deposits	3,365,770		3,558,354
	Accounts receivable - trade	1,297,360	1,055,702
	Other	145,959		242,842
	Allowance for doubtful accounts	(10)	(8)
	Total current assets	4,809,080		4,856,891
	Non-current assets
	Property, plant and equipment	99,453		95,575
	Intangible assets	113,808	104,262
	Investments and other assets	299,548		297,968
	Total non-current assets	512,810	497,806
	Total assets	5,321,891		5,354,697
	Liabilities
	Current liabilities
	Accounts payable - trade	1,560,138	1,392,444
	Income taxes payable	32,759		104,162
	Other	716,006	716,133
	Total current liabilities	2,308,904		2,212,740
	Total liabilities	2,308,904	2,212,740
	Net assets
	Shareholders' equity
	Capital stock	414,539		415,241
	Capital surplus	404,539	405,241
	Retained earnings	2,194,043		2,321,609
	Treasury shares	(135)	(135)
	Total shareholders' equity	3,012,986		3,141,957
	Total net assets	3,012,986	3,141,957
	Total liabilities and net assets	5,321,891		5,354,697

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(2) Quarterly Statement of Income (First three-month period)

					(Unit: Thousand yen)
			First quarter of the		First quarter of the
			previous fiscal year		fiscal year under review
			(From July 1, 2020		(From July 1, 2021
			to September 30, 2020)		to September 30, 2021)
	Net sales		3,447,486		1,312,306
	Cost of sales		2,385,823		300,866
	Gross profit		1,061,662		1,011,439
	Selling, general and administrative expenses	850,536	753,967
	Operating income		211,126		257,471
	Non-operating income
	Interest income		15		15
	Rewards income	1,715	2,614
	Subsidy income		6,630		-
	Other	242	226
	Total non-operating income		8,603		2,856
	Non-operating expenses
	Interest expenses		87		-
	Foreign exchange losses	46	52
	Other		3		0
	Total non-operating expenses	137	52
	Ordinary income		219,592		260,275
	Extraordinary income
	Insurance claim income		-		100,000
	Total extraordinary income		-	100,000
	Extraordinary losses
	Information security expenses		-	45,660
	Total extraordinary losses		-		45,660
	Net income before income taxes	219,592	314,615
	Income taxes - current		43,732		96,679
	Income taxes - deferred	25,636	761
	Total income taxes		69,369		97,440
	Net income	150,223	217,174

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