Kanamic Network : Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending September 30, 2022〔Japanese GAAP〕

Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending

September 30, 2022〔Japanese GAAP〕

			August 9, 2022
Company Name:	Kanamic Network Co., Ltd.		Stock Exchange Listing: Tokyo
Stock Code:	3939		URL: http://www.kanamic.net/
Representative:	Representative Director and President: Takuma Yamamoto	（TEL）03-5798-3955
Contact:	Director, General Manager: Kenya Wakabayashi
Scheduled date to submit quarterly securities report:	Scheduled date to commence dividend payments:
August 10, 2022		-

Availability of supplementary briefing material on quarterly financial results: Not available

Quarterly financial results briefing: No

（Figures are rounded down to the nearest million yen）

1. Consolidated Financial Results for the Third Quarter of Fiscal Year ending September 30, 2022 (From October 1, 2021 to June 30, 2022)

(1) Consolidated Operating Results （Cumulative）	（Percentages indicate year-on-year changes from the
	previous corresponding period）
	Net Sales		Operating Profit	Ordinary Profit	Profit attributable to
							owners of parent
Third Quarter ended	Millions of yen	％	Millions of yen	％	Millions of yen	％	Millions of yen	％
June 30, 2022	1,627	4.7	624	-2.0	624	-2.7	420	-5.8
June 30, 2021	1,555	13.9	637	36.9	642	32.3	445	37.3

(Reference) Comprehensive	Third Quarter ended June 30, 2022:
income:	424 million yen (-5.4%)

Third Quarter ended June 30, 2021: 448 million yen (38.1%)

	Basic profit per share	Basic diluted profit per
		share
Third Quarter ended	Yen	Yen
June 30, 2022	8.86	8.42
June 30, 2021	9.27	－

(2) Consolidated financial position

	Total Assets		Net Assets			Shareholders' Equity Ratio
		Millions of Yen		Millions of Yen		％
Third quarter ended			5,257			2,281		43.3
June 30, 2022
Fiscal year ended			4,395			1,959		44.5
September 30, 2021
(Reference) Shareholder's equity:	Third Quarter ended June 30, 2022:	Fiscal year ended September 30, 2021:
2,277 million yen		1,954 million yen
.
2. Dividends
				Annual cash dividends per share
	First Quarter	Second Quarter	Third Quarter		Fiscal Year End	Total
	End		End	End
Fiscal Year ended		Yen		Yen	Yen			Yen	Yen
	－	0.00	－		2.50	2.50
September 30, 2021
Fiscal Year ending		－	0.00	－
September 30, 2022
Fiscal Year ending
September 30, 2022							3.00	3.00
(forecast)

(Note) Revisions in dividend forecast subsequent to most recent announcement: None

－ 1 －

3. Forecast for the consolidated financial results for the fiscal year ending September 30, 2022 (from October 1, 2021 to September 30, 2022)

（% indicates YoY change from the previous corresponding fiscal year or period）

	Net Sales	Operating Profit	Ordinary Profit	Profit attributable to	Profit Per Share
							owners of parent
	Millions	％	Millions	％	Millions	％	Millions	％	Yen
	of yen		of yen		of yen		of yen
Full Year	2,350	12.9	930	10.5	930	12.1	640	10.4	13.50

(Note) Changes in consolidated financial results forecasts subsequent to most recent announcement: None

* Notes

（１）Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scope of consolidation): Yes

One New Company (Name: Urban Fit Co., Ltd.)

（２）Special accounting methods adopted for the preparation of quarterly consolidated financial statements: None

（３）Changes in accounting policies, changes in accounting estimates and restatements
①	Changes in accounting policies due to the revision of accounting standards：	Yes
②	Changes in accounting policies other than ① ：	Yes
③	Changes in accounting estimates：	Yes
④	Restatements：	None

(Note) In Q1 of the current fiscal year the Company changed its depreciation method, and this change qualifies as a "change in accounting policy which is difficult to distinguish from a change in accounting estimates". For details see "2. Quarterly Consolidated Financial Statements and Primary Notes, (3) Notes Regarding the Quarterly Consolidated Financial Statements".

（４）Total number of issued shares (common shares)
①	Total number of issued shares at	Third quarter		Fiscal Year ended
	the end of the period (including	ended June 30,	48,132,000 Shares	September 30,	48,132,000 Shares
	treasury shares):	2022		2021
		Third quarter		Fiscal Year
②	Total number of treasury shares	ended June 30,	675,806 Shares	ended	710,906 Shares
	at the end of the period:	2022	September 30,
				2021
③	Average number of shares during	Third quarter		Third quarter
	the 9 month period (quarter-to-	ended June 30,	47,441,794 Shares	ended June 30,	48,130,794 Shares
	date)	2022		2021

• This quarterly financial results report is not subject to quarterly review by a certified public accountant or auditing corporation.
• Explanation of appropriate use of performance forecasts and other special notes.
  The statements regarding forecast of financial results in this report are based on information that is available to the Company, as well as certain assumptions that are deemed to be reasonable, and we make no promise that such statements will prove to be correct. Actual results may differ materially due to a variety of factors.

－ 2 －

1．Quarterly Consolidated Financial Statements and Primary Notes

（１）Quarterly Consolidated Balance Sheet

			(Thousands of yen)
	As of September 30, 2021	As of June 30, 2022
Assets
Current assets
Cash and deposits	3,710,780	3,499,959
Accounts receivable - trade	85,820	119,292
Merchandise	－	17,287
Work in process	164	14,064
Other	78,518	108,961
Allowance for doubtful accounts		-16,363	-17,135
Total current assets		3,858,920	3,742,429
Non-current assets
Property, plant and equipment	79,078	631,969
Intangible assets
Software	363,702	457,092
Goodwill	－	180,594
Other		76	76
Total intangible assets		363,779	637,763
Investments and other assets
Other	93,759	245,346
Allowance for doubtful accounts		-480	-256
Total investments and other assets		93,278	245,089
Total non-current assets		536,136	1,514,823
Total assets		4,395,056	5,257,253
Liabilities
Current liabilities
Accounts payable - trade	8,830	17,414
Current portion of bonds payable	－	80,000
Short-term borrowings	－	10,000
Current portion of long-term borrowings	－	18,109
Income taxes payable	152,361	89,502
Provision for bonuses	30,136	48,034
Asset retirement obligations	16,000	16,000
Other		212,504	341,174
Total current liabilities		419,833	620,234
Non-current liabilities
Bonds payable	－	200,000
Bonds with share acquisition rights	2,003,866	2,003,266
Long-term borrowings	－	71,471
Asset retirement obligations	11,314	61,344
Other		800	19,298
Total non-current liabilities		2,015,981	2,355,380
Total liabilities		2,435,814	2,975,615
Net assets
Shareholders' equity
Share capital	192,060	192,060
Capital surplus	132,060	132,060
Retained earnings	2,065,807	2,362,524
Treasury shares		-436,943	-415,370
Total shareholders' equity		1,952,983	2,271,274
Accumulated other comprehensive income
Foreign currency translation adjustment		1,795	5,899
Total accumulated other comprehensive income		1,795	5,899
Share acquisition rights		4,464	4,464
Total net assets		1,959,242	2,281,637
Total liabilities and net assets	4,395,056	5,257,253
	－ 3	－

（２）Quarterly Consolidated Statement of Income and Comprehensive Income

（Quarterly Consolidated Statement of Income）

（Nine months ended

June 30, 2022）

			(Thousands of yen)
		Nine months ended	Nine months ended
		June 30, 2021	June 30, 2022
Net sales	1,555,348	1,627,903
Cost of sales	229,195	205,633
Gross profit	1,326,153	1,422,269
Selling, general and administrative expenses	688,477	797,292
Operating profit	637,676	624,977
Non-operating income
Interest income	50	109
Interest on securities	－	599
Foreign exchange gains	2,430	－
Subsidy income	1,599	－
Miscellaneous income	583	670
Total non-operating income	4,662	1,379
Non-operating expenses
Foreign exchange losses	－	1,475
Miscellaneous losses	185	71
Total non-operating expenses	185	1,547
Ordinary profit	642,153	624,809
Extraordinary income
Gain on sale of non-current assets	596	－
Total extraordinary income	596	－
Profit before income taxes	642,749	624,809
Income taxes - current	195,724	207,537
Income taxes - deferred	1,039	-2,969
Total income taxes	196,763	204,567
Profit	445,985	420,241
Profit attributable to owners of parent		445,985	420,241

－ 4 －

（Quarterly Consolidated Statement of Comprehensive Income）

（Nine months ended

June 30, 2022）

			(Thousands of yen)
		Nine months ended	Nine months ended
		June 30, 2021	June 30, 2022
Profit	445,985	420,241
Other comprehensive income
Foreign currency translation adjustment		2,426	4,104
Total other comprehensive income		2,426	4,104
Comprehensive income		448,411	424,345
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	448,411	424,345
Comprehensive income attributable to non-controlling	－	－
interests

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