FreeBit : ■ Financial Results for the First Three Months (1Q) of the Fiscal Year Ending April 30, 2024

NOTE：This document was prepared by machine translation, and no manual modification has been made to the translated contents. This document is to be used only as a reference, and in cases any differences occur between English version and the original Japanese version, the Japanese version shall prevail.

Consolidated Financial Results for the First Quarter of the Fiscal Year Ending April 30, 2024

(Japanese GAAP)

September 8, 2023

Listed company

FreeBit Co., Ltd.

Listing: Tokyo Stock Exchange

name

Code No.

3843

URL https://freebit.com/

Representative

Title:

President, CEO and CTO

Name: Atsuki Ishida

Contact

Title:

Director and General Manager of

Name: Ikuko Wada

TEL [phone]

Group Corporate Planning Division

Date of Quarterly Report

September 11, 2023

Start Date of Dividend

-

Release:

Payout:

Supplementary documents available

pertaining to quarterly financial results: Yes

Quarterly results briefing: Yes

(Video streaming Only)

(all amounts rounded down to the nearest million yen)

Consolidated Financial Results for the First Quarter of the Fiscal Year Ending April 30, 2024 (May 1, 2023 to July 31, 2023)

(1) Consolidated Operating Results (Cumulative)

(percentages shown represent year-on-year % change)

Net sales

Operating income

Ordinary income

Net income attributable

to owners of the parent

Three months ended

Millions of

%

Millions of

%

Millions of

%

Millions of

%

yen

yen

yen

yen

July 31, 2023

14,040

-

1,664

-

1,623

-

863

-

July 31, 2022

11,142

4.4

864

-16.2

773

-23.9

305

-45.7

(Note) Comprehensive income July 31, 2023

1,181Millions of yen (-%) ,July 31, 2022 482Millions of yen

(-34.6%)

Net income per share

Net income per share

(Diluted)

Three months ended

Yen

Yen

July 31, 2023

43.26

42.80

July 31, 2022

16.26

16.14

(Note) Consolidated subsidiary GIGAPRIZE Co., Ltd. and its subsidiaries have changed the date of their fiscal year-end from March 31 to April 30. As the first quarter of the current fiscal year is a transitional period for changing the date of their fiscal year-end, percentages representing year-on-year change has been omitted.

(2) Consolidated Financial Position
	Total assets	Net assets	Shareholders'Equity
		Ratio
As of	Millions of yen	Millions of yen		%
July 31, 2023	35,102		11,892		25.4
April 30, 2023	35,926		11,032		22.9
(Reference) Shareholders' equity: July 31, 2023：8,907 Millions of yen ; April 30, 2023 : 8,242 Millions of yen
2. Dividends
				Dividend per share
	End of 1Q		End of 2Q	End of 3Q	End of Term	Total
	Yen		Yen		Yen		Yen	Yen
FY2023/04	-		0.00		-	8.00	8.00
FY2024/04	-
			- 1 -

			Dividend per share
	End of 1Q	End of 2Q	End of 3Q	End of Term	Total
FY2024/04(Forecast)		-	-	-	-

(NOTE) Revisions during this quarter of dividends forecast for fiscal year: None

At present, the dividend forecast for the fiscal year ending April 2024 is undecided.

Forecast of Consolidated Financial Results for the Fiscal Year Ending April 30, 2024 (May 1, 2023 to April 30, 2024)

(percentages shown represent year-on-year % change)

	Net sales		Operating income	Ordinary income	Profit attributable to	Net income per
		owners of parent	share
	Millions		%	Millions	%	Millions	%	Millions	%	Yen
	of yen		of yen	of yen	of yen
FY2024/04	50,000		6.9	5,000	24.8	4,500	21.4	2,500	39.5	125.25

(Note) Revisions during this quarter of previously disclosed consolidated business results projection for FY2024: None

Since we manage our operations on an annual basis, we have omitted the presentation of consolidated earnings forecasts for the second quarter (cumulative).

For more information, please refer to "(3) Consolidated Results Forecasts and Other Forward-looking Information" of P.8" Qualitative Information on Quarterly Financial Results", etc.

• Notes

1. Transfers in significant subsidiaries during the period (changes in specified subsidiaries resulting in transfers in the scope of consolidation): None
2. Special accounting treatments used in preparation of the quarterly consolidated financial statements: None
3. Changes in accounting policy, changes in accounting estimates, restatements

① Changes resulting from revisions to accounting standard, etc.: None

② Changes other than those specified above: None

③ Changes in accounting estimates: None

④ Restatement of revisions: None

(4) Number of outstanding shares (Common Shares)

① Outstanding shares at period end	Q1 FY2024/04	23,414,000shares	FY2024/04	23,414,000shares
(inc. treasury)
②Treasury shares at period end
Q1 FY2024/04	3,453,741shares	FY2024/04	3,453,741shares
③Average number of shares during the period
Q1 FY2024/04	19,960,259shares	Q1 FY2023/04	18,800,031shares

• Quarterly financial results are not subject to quarterly review by independent auditors.
• Explanations and other special notes concerning the appropriate use of business performance forecasts (Notes on forward-looking statements)
  The earnings forecasts and other forward-looking statements herein are based on information currently available to the Company

and on certain assumptions deemed to be reasonable and do not constitute guarantees by the Company of future performance. Actual results may differ materially from the forecast depending on a range of factors. Please refer to "(3) Consolidated Results Forecasts and Other Forward-looking Information" of P.8" Qualitative Information on Quarterly Financial Results" for the assumptions upon which the forecasts are based and for notes regarding the use of the forecasts.

(Method of obtaining supplementary material on financial results and details of quarterly financial results briefing session) ・Supplementary materials will be disclosed on TDnet on the same day and will also be posted on our website.

・The content of the financial results briefing will be posted on our website with the recorded videos.

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○ Appendix Table of Contents
1. Qualitative Information on Quarterly Financial Results	････････････････････････････････････････････････	4
(1)	Operating Results	････････････････････････････････････････････････････････････････････････････	4
(2)	Financial Position	････････････････････････････････････････････････････････････････････････････	8
(3)	Consolidated Results Forecasts and Other Forward-looking Information ･････････････････････････････････	8
2. Quarterly Consolidated Financial Statements and Major Notes	･･････････････････････････････････････････	9
(1)	Quarterly Consolidated Balance Sheets ･･･････････････････････････････････････････････････････････	9
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income ･････････････････････････････････	11
	Quarterly Consolidated Statements of Income
	First quarter consolidated cumulative accounting period ････････････････････････････････････････････	11
	Quarterly Consolidated Statements of Comprehensive Income
	First quarter consolidated cumulative accounting period ････････････････････････････････････････････	12
(3)	Notes to Quarterly Consolidated Financial Statements			13
	(Notes regarding the going concern assumption) ････････････････････････････････････････････････････	13
	(Notes regarding changes impacting shareholders' equity ) ･･･････････････････････････････････････････	13
	(Changes in the scope of consolidation or application of the equity method) ･･････････････････････････････	13
	(Segment Information) ････････････････････････････････････････････････････････････････････････	13

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1. Qualitative Information on Quarterly Financial Results

(1) Operating Results

Forward-looking statements in the text are based on judgments as of the end of the current quarterly period.

GIGAPRIZE CORPORATION (GIGAPRIZE) and its subsidiaries changed their fiscal year-end from March 31 to April 30, the same as our consolidated fiscal year-end. As a result, the consolidated subsidiary in the current fiscal year has an irregular settlement of accounts for the 13 months from April 1, 2023, to April 30, 2024. In the first quarter of the fiscal year under review, the four months from April 1, 2023, to July 31, 2023, have been included in the consolidated settlement.

For more information on the change in fiscal year-end, see "2.Quarterly Consolidated Financial Statements and Major Notes

1. Notes to Quarterly Consolidated Financial Statements (Changes in the scope of consolidation or the scope of application of the equity method)" of p.13.
   The official names and explanations of the names used in "Explanation of Operating Results" are as follows.

Name in use	Official name	Explanation
5G	5th Generation	Abbreviation for 5th Generation Mobile Communications System, which is one
of the next generation communications standards
		Concept of the next-generation distributed Internet, which enables users to
web3	Web3(Web 3.0)	exchange data and content directly with each other without going through a huge
		platform former
MVNO	Mobile Virtual Network Operator	Virtual mobile operator
Cloud	Cloud Computing	A generic term for a data center or server group in which a system for providing
software, etc. to users over a network and data is stored and operated
		A system that allows goods to communicate with each other by equipping them
IoT	Internet of Things	with a communication function, thereby enabling automatic recognition and
		automatic control without human intervention.
MVNE	Mobile Virtual Network Enabler	MVNO support provider
Metaverse	Metaverse	Virtual space that is used over the Internet
AI	Artificial Intelligence	Techniques that use computers to study or conduct human intellectual behavior
		One of TONE Laboratory's demonstration test projects
TONE Care	TONE Care	An online service that allows customers to promptly provide various health
consultations remotely, such as consultations on health concerns and counseling
		on the overuse of children's smartphones
DX	Digital Transformation	Reforming products, services, business models, etc. by utilizing data and digital
technologies
NFT	Non-Fungible Token	Technology that can clarify whether digital content is real, who is the producer,
and who is the owner

Our group promotes corporate management with a view to the 10-year plan from 2021 to 2030. In line with this, we are currently promoting management to achieve net sales of 50 billion yen and operating income of 5 billion yen in the three- year medium-term management plan "SiLK VISION 2024" that ends in the current consolidated fiscal year.

In addition, with an eye to the Next Medium-Term Management Plan "SiLK VISION 2027", we will invest our management resources in the mobile revolution, lifestyle revolution, and production revolution domains, which we consider to be growth domains worldwide while contributing to the realization of a sustainable society. In this way, we will aim to expand our business through Exponential Technology "exponentially growing technologies" as "5G/web3 era Platform Maker".

The business operations of each reportable segment are as follows.

<5G Infrastructure Support Business>

In addition to support services for entry into the MVNO business and business support services for ISPs, we promote support services for various business corporations to introduce cloud and IoT, etc. We will also build next-generation networks and data centers to respond to the 5G era. We will strengthen service provision that leverages our cloud infrastructure and deploy services that utilize 5G, and eSIM (embedded SIM), as well as expand services that combine these and other business resources.

<5G Lifestyle Support Business>

In addition to providing mobile communications services using smartphones and other devices targeting individuals and Internet-related services via fixed lines, we are promoting the provision of 5G Homestyle (Internet Services for Collective

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Housing). In 5G Homestyle, we are also focusing on establishing new services other than Internet services for apartment buildings.

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