UNITED : 1st Quarter, Fiscal Year Ending March 2023 Consolidated Financial Statements

UNITED, Inc.

Consolidated Financial Report For the 1st Quarter of FY 2022

(Japanese Accounting Standards)

			August 4, 2022
Company name:	UNITED, Inc.	Stock exchange listing:	Tokyo Stock Exchange
Stock code:	2497	URL:	https://united.jp/
Representative:	Tomonori Hayakawa, CEO
Contact:	Yuji Yamashita, Director and General Manager of Corporate Administration Division
Tel:	[phone]

Scheduled date for filing of quarterly securities report:		August 4, 2022
Scheduled date of commencement of dividend payment:		―
Supplementary documents for quarterly results:		Yes
Quarterly results briefing:			Yes	( For institutional investors and securities analysts)
					(Amounts of less than one million yen are rounded down)
1.Financial Highlights
(1) Results of Operations						(Percentages are shown as year-on-year changes)
	Net sales		Operating profit		Ordinary profit		Profit attributable
				to owners of the parent
	Mil.¥	%	Mil.¥		%	Mil.¥	%	Mil.¥	%
1st Quarter of FY 2022	4,776	0.5	3,125		4.1	3,125	3.9	2,399	16.5
1st Quarter of FY 2021	4,752	―	3,003		―	3,008	―	2,060	―

(Note) Comprehensive income :	1st Quarter of FY 2022	△2,095 Mil.¥ (―%)
	1st Quarter of FY 2021	3,256 Mil.¥ (―%)
	Profit		Profit
	per share (basic)	per share (diluted)
	Yen		Yen
1st Quarter of FY 2022	119.24		119.10
1st Quarter of FY 2021	94.75		―

(Notes) Due to the adoption of ASBJ Statement No. 29 "Accounting Standard for Revenue Recognition" in the FY2021, this Forecasts of consolidated results of operations for FY2021 is presented based on the figures after the application of ASBJ Statement No. 29. Year-on-year percentage changes in net sales is not presented because the Company expects a significant impact on the figure of net sales and it is not appropriate to compare that for the FY2021 with that for the FY2020.

(2) Financial Position

	Total assets	Net assets	Equity ratio
		Mil.¥		Mil.¥	%
1st Quarter of FY 2022		33,870		27,513	80.6
(As of June 30, 2022)
FY 2021		38,701		30,288	77.7
(As of March 31, 2022)
(Reference) Shareholder's Equity :		1st Quarter of FY 2022	27,295 Mil.¥
		FY 2021		30,064 Mil.¥
2.Dividend Per Share
	End of 1st	End of 2nd	End of 3nd	Year-end	Annual
	Quarter	Quarter	Quarter
	Yen	Yen	Yen	Yen	Yen
FY 2021	―	17.00	―	20.00	37.00
FY 2022	―
FY 2022(Forecasted)		―	―	―	―

(Note) The forecasted dividend amounts for the FY 2022 are not determined at the present moment.

3. Forecasts of consolidated results of operations for FY 2022

(Percentages show year-on-year changes)

	Net sales		Operating profit	Ordinary profit		Profit attributable to	Profit per share
			owners of the parent
	Mil.¥	％	Mil.¥	％	Mil.¥	％	Mil.¥	％	Mil.¥
FY 2022	12,800	0.7	5,800	1.1	5,800	0.7	4,200	9.8	208.00

(Note) Revisions of the forecasts of consolidated results since the latest announcement : None

*Notes
(1)	Significant changes in scope of consolidation	：	No
(2)	Application of particular accounts procedures to the preparation of quarterly consolidated	：	No
	financial statement
(3)	Changes in accounting policies and changes or restatement of accounting estimates
	(i) Changes in accounting policies caused by revision of accounting standards	：	Yes
	(ii) Changes in accounting policies other than (i)	：	No
	(iii) Changes in accounting estimates	：	No
	(iv) Restatement	：	No
(4)	Number of shares issued (common stock)

• Number of shares issued at end of the year (including treasury shares)

• Number of treasury shares issued at end of the year

• Number of average shares outstanding during the term

1st Quarter of FY 2022	20,756,345 shares	FY 2021	20,756,345 shares
1st Quarter of FY 2022	756,749 shares	FY 2021	587,199 shares
1st Quarter of FY 2022	20,120,462 shares	1st Quarter of FY 2021	21,741,425 shares

*Status of a quarterly review

- Quarterly consolidated financial results are not subject to a quarterly review by certified public accountants or audit corporations

*Explanations and other special notes concerning the appropriate use of business results forecasts

• The video of the financial results briefing for the 1st Quarter of FY 2022 will be delivered to institutional investors and analysts via our website. The materials used in this video will be available on our website.

UNITED Consolidated Financial Statements

(1) UNITED Consolidated Balance Sheet

		(Unit : Thousands of Yen)
	FY 2021	1st Quarter of FY 2022
Items of an account	(As of March 31, 2022)	(As of June 30, 2022)
	Amount	Amount
Assets
Current assets
Cash and deposits	12,165,526	13,095,941
Notes and accounts receivable - trade	1,347,244	1,045,055
Operational investment securities	18,789,981	12,613,313
Inventories	69,727	41,624
Derivatives	1,471,624	2,129,603
Other	340,835	1,042,904
Allowance for doubtful accounts	△5,411	△6,384
Total current assets	34,179,529	29,962,060
Non-current assets
Property, plant and equipment	292,599	283,706
Intangible assets
Goodwill	327,664	308,390
Other	234,613	237,468
Total intangible assets	562,278	545,859
Investments and other assets
Derivatives	3,088,403	2,272,049
Other	578,244	806,966
Total investments and other assets	3,666,648	3,079,016
Total non-current assets	4,521,526	3,908,582
Total assets	38,701,056	33,870,642
Liabilities
Current liabilities
Accounts payable - trade	879,338	766,394
Short-term borrowings	100,000	100,000
Current portion of long-term borrowings	69,178	64,108
Income taxes payable	1,103,564	1,134,496
Other	660,077	698,054
Total current liabilities	2,812,158	2,763,054
Non-current liabilities
Long-term borrowings	75,766	61,924
Deferred tax liabilities	5,524,606	3,531,762
Total non-current liabilities	5,600,372	3,593,686
Total liabilities	8,412,531	6,356,741
Net assets
Shareholders' equity
Share capital	2,923,019	2,923,019
Capital surplus	379,270	379,270
Retained earnings	14,979,955	16,975,791
Treasury shares	△983,344	△1,253,188
Total shareholders' equity	17,298,901	19,024,892
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	9,601,720	5,216,669
Deferred gains or losses on hedges	3,163,747	3,053,867
Total accumulated other comprehensive income	12,765,468	8,270,536
Share acquisition rights	224,154	218,472
Total net assets	30,288,524	27,513,901
Total liabilities and net assets	38,701,056	33,870,642

(2) UNITED Consolidated Statement of Income

		(Unit : Thousands of Yen)
	1st Quarter of FY 2021	1st Quarter of FY 2022
Items of an account	(April 1, 2021	(April 1, 2022
to June 30, 2021)	to June 30, 2022)
	Amount	Amount
Net sales	4,752,834	4,776,198
Cost of sales	1,101,782	979,842
Gross profit	3,651,051	3,796,355
Selling, general and administrative expenses	647,706	670,976
Operating profit	3,003,345	3,125,378
Non-operating income
Interest and dividend income	4	1
Share of profit of entities accounted for using equity method	9,709	4,339
Gain on forfeiture of unclaimed dividends	278	2,307
Other	692	2,875
Total non-operating income	10,685	9,523
Non-operating expenses
Interest expenses	553	511
Commission expenses	39	26
Foreign exchange losses	265	―
Loss on valuation of crypto assets	4,962	6,098
Expense of restricted shares	―	3,044
Other	104	106
Total non-operating expenses	5,925	9,787
Ordinary profit	3,008,105	3,125,114
Extraordinary income
Transfer of rights income	―	350,000
Other	―	9,522
Total extraordinary income	―	359,522
Extraordinary losses
Loss on retirement of non-current assets	―	2,667
Total extraordinary losses	―	2,667
Profit before income taxes	3,008,105	3,481,969
Income taxes - current	943,702	1,091,123
Income taxes - deferred	4,304	△8,373
Total income taxes	948,007	1,082,750
Profit	2,060,098	2,399,218
Profit attributable to owners of parent	2,060,098	2,399,218

(3) UNITED Consolidated Statement of Comprehensive Income

		(Unit : Thousands of Yen)
	1st Quarter of FY 2021	1st Quarter of FY 2022
Items of an account	(April 1, 2021	(April 1, 2022
to June 30, 2021)	to June 30, 2022)
	Amount	Amount
Profit	2,060,098	2,399,218
Other comprehensive income
Valuation difference on available-for-sale securities	1,197,328	△4,385,051
Deferred gains or losses on hedges	―	△109,880
Foreign currency translation adjustment	△29	―
Share of other comprehensive income of entities accounted for using equity method	△458	―
Total other comprehensive income	1,196,840	△4,494,931
Comprehensive income	3,256,938	△2,095,713
Comprehensive income attributable to owners of parent	3,256,938	△2,095,713