Mynet : Summary of Consolidated Financial Results for the Year Ended December 31, 2021 (Based on Japanese GAAP)

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 Consolidated Financial Results

for the Year Ended December 31, 2021

(Based on Japanese GAAP)

									February 14, 2022
Company name:	Mynet Inc.
Stock exchange listing:	Tokyo
Stock code:	3928	URL https://mynet.co.jp/
Representative:	President and CEO		Jin Uehara
Inquiries:	Director			Takao Koide		TEL [phone]
Scheduled date of ordinary general meeting of shareholders:		March 29, 2022
Scheduled date to file Securities Report:		March 30, 2022
Scheduled date to commence dividend payments:		March 30, 2022
Preparation of supplementary material on financial results:		Yes
Holding of financial results meeting:			Yes	(for institutional investors and analysts)
						(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended December 31, 2021 (from January 1, 2021 to December 31, 2021)
(1) Consolidated operating results						Percentages indicate year-on-year changes
		Net sales		Operating profit	Ordinary profit	Profit attributable to
			owners of parent
		Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Year ended December 31, 2021	10,571	(8.3)	577	(49.1)	546	(51.1)	229	(79.7)
Year ended December 31, 2020	11,533	(1.0)	1,135	-	1,116	-	1,129	-
Note: Comprehensive income Year ended December 31, 2021	¥236 million	[(79.1)%]
	Year ended December 31, 2020	¥1,128 million	[-%]
		Earnings per share	Diluted earnings per	Profit attributable to Ordinary profit/total Operating profit/net
			share		owners of	assets	sales
					parent/equity
		Yen		Yen			%		%	%
Year ended December 31, 2021	26.50		26.45			8.6		10.1	5.5
Year ended December 31, 2020	131.34		130.69			58.5		22.2	9.8
Reference: Share of profit (loss) of entities accounted for using equity method
	Year ended December 31, 2021	¥ - million
	Year ended December 31, 2020	¥ - million
(2) Consolidated financial position
		Total assets		Net assets		Equity ratio	Net assets per share
		Millions of yen	Millions of yen		%		Yen
As of December 31, 2021	5,814			2,817		48.3		324.15
As of December 31, 2020	5,049			2,518		49.6		290.73
Reference: Equity	As of December 31, 2021	¥2,806 million
	As of December 31, 2020	¥2,504 million
(3) Consolidated cash flows	Cash flows from		Cash flows from	Cash flows from	Cash and cash equivalents
		operating activities	investing activities	financing activities	at end of period
		Millions of yen	Millions of yen	Millions of yen	Millions of yen
Year ended December 31, 2021		527			(14)		210		3,478
Year ended December 31, 2020	1,848			(178)		(1,107)		2,755

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2. Cash dividends

		Annual dividends per share		Total cash	Dividend payout	Ratio of dividends
			ratio	to net assets
			dividends (Total)
						(Consolidated)	(Consolidated)
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
Year ended December 31, 2020	-	0.00	-	0.00	0.00	-	-	-
Year ended December 31, 2021	-	0.00	-	6.00	6.00	52	22.6	2.0
Year ending December 31, 2022	-	6.00	-	6.00	12.00		86.5
(Forecast)

3. Forecast of consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 31, 2022)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Full year	11,000	4.1	200	(65.4)	175	(68.0)	120	(47.7)

Note: The Company has not prepared the consolidated financial results forecast for the first half of the fiscal year ending December 31, 2022.

4. Notes

(1) Changes in significant subsidiaries during the year ended December 31, 2021	Yes
(changes in specified subsidiaries resulting in the change in scope of consolidation):
Newly included: 1 company SHIGA LAKESTARS inc.
Excluded: 1 company MYLOOPS inc.
(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:	No
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of December 31, 2021	8,698,760	shares	As of December 31, 2020	8,614,600	shares
Number of treasury shares at the end of the period
	As of December 31, 2021	23,480	shares	As of December 31, 2020	5,230	shares
Average number of shares during the period
	Year ended December 31, 2021	8,651,699	shares	Year ended December 31, 2020	8,602,427	shares

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(Reference) Overview of non-consolidated financial results
1. Non-consolidated financial results for the year ended December 31, 2021 (from January 1, 2021 to December 31, 2021)
(1) Non-consolidated operating results							(Percentages indicate year-on-year changes)
			Net Sales		Operating profit	Ordinary profit		Profit
		Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen	%
Year Ended December 31, 2021		1,815		(13.0)	(78)		-	339		-	337	-
Year Ended December 31, 2020		2,087		(7.7)	107		88.3	15		-	(46)	-
			Earnings per share	Diluted earnings per share
					Yen			Yen
Year Ended December 31, 2021				38.96			38.88
Year Ended December 31, 2020				(5.36)			-
(2) Non-consolidated financial position
			Total assets		Net assets		Equity ratio		Net assets per share
			Millions of yen	Millions of yen			%		Yen
As of December 31, 2021				4,941			1,782			35.8		204.75
As of December 31, 2020				4,576			1,375			29.7		157.89
Reference: Equity	As of December 31, 2021	¥1,770 million
	As of December 31, 2020	¥1,360 million

• Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
• Proper use of forecasts of financial results, and other special matters

The forward-looking statements, including the financial forecasts shown in this document are based on information currently available to the Company and on certain assumptions deemed to be reasonable. As such, they do not constitute guarantees by the Company of future performance. Actual performance and other results may differ materially from these forecasts due to various factors.

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Consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2020	As of December 31, 2021
Assets
Current assets
Cash and deposits	2,755,830	3,500,153
Accounts receivable - trade	1,165,013	1,063,202
Accounts receivable - other	27	38,825
Income taxes receivable	6,825	146,187
Other	190,547	252,594
Allowance for doubtful accounts	-	(9,585)
Total current assets	4,118,243	4,991,377
Non-current assets
Property, plant and equipment
Buildings and structures	44,200	54,909
Accumulated depreciation	(13,397)	(12,269)
Buildings and structures, net	30,803	42,639
Tools, furniture and fixtures	109,915	87,478
Accumulated depreciation	(78,782)	(61,173)
Tools, furniture and fixtures, net	31,132	26,304
Other	-	43,631
Accumulated depreciation	-	(38,189)
Other, net	-	5,442
Total property, plant and equipment	61,935	74,387
Intangible assets
Goodwill	125,817	222,933
Other	30,334	26,314
Total intangible assets	156,152	249,248
Investments and other assets
Investment securities	152,919	182,291
Leasehold deposits	171,447	113,891
Long-term prepaid expenses	107,400	76,845
Deferred tax assets	281,203	125,814
Other	564	708
Total investments and other assets	713,534	499,551
Total non-current assets	931,623	823,186
Total assets	5,049,867	5,814,564

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			(Thousands of yen)
		As of December 31, 2020	As of December 31, 2021
Liabilities
Current liabilities
Accounts payable - trade	278,084	255,287
Accounts payable - other	321,861	239,077
Advances received	86,448	334,447
Current portion of long-term borrowings	100,000	161,048
Current portion of bonds payable	638,750	400,000
Income taxes payable	50,230	84,746
Other	300,572	167,819
Total current liabilities	1,775,946	1,642,426
Non-current liabilities
Long-term borrowings	50,000	543,199
Bonds payable	700,000	800,000
Asset retirement obligations	5,193	10,962
Total non-current liabilities	755,193	1,354,161
Total liabilities	2,531,140	2,996,587
Net assets
Shareholders' equity
Share capital	3,076,557	46,483
Capital surplus	3,057,113	1,387,290
Retained earnings	(3,629,198)	1,372,940
Treasury shares	(353)	(353)
Total shareholders' equity	2,504,119	2,806,360
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	(1,107)	5,740
Total accumulated other comprehensive income	(1,107)	5,740
Share acquisition rights	15,715	5,875
Total net assets	2,518,726	2,817,977
Total liabilities and net assets	5,049,867	5,814,564

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