SUNNEXTA : Summary of Consolidated Financial Results for the Year Ended June 30, 2022 (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 June 30, 2022

(Based on Japanese GAAP)

																				August 10, 2022
Company name:	SUNNEXTA GROUP Inc.
Stock exchange listing:	Tokyo
Stock code:	8945	URL https://www.sunnexta.co.jp/
Representative:	Representative Director, President		AKIRA TAKAKI
Inquiries:	Executive Officer, Head of Accounting and	ISAMU YOSHIDA	TEL [phone]
Finance Group
Scheduled date of ordinary general meeting of shareholders:		September 28, 2022
Scheduled date to file Securities Report:				September 26, 2022
Scheduled date to commence dividend payments:				September 29, 2022
Preparation of supplementary material on financial results:				No
Holding of financial results meeting:								Yes	(for analysts)
													(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended June 30, 2022 (from July 1, 2021 to June 30, 2022)
(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 June 30, 2022		8,696		2.1		882		5.5		932	3.0	1,976		269.1
Year ended June 30, 2021		8,519		(1.2)		836		(2.3)		906	0.4			535		(4.7)
			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 June 30, 2022		204.80			198.36				24.5					7.9				10.1
Year ended June 30, 2021		53.84			52.06				6.7					7.8				9.8
(2) Consolidated financial position
			Total assets				Net assets		Equity ratio	Net assets per share
			Millions of yen		Millions of yen					%					Yen
As of June 30, 2022			10,625						7,483					69.2					811.82
As of June 30, 2021			12,975						8,905					67.7					877.41
(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 June 30, 2022					739						2,221					(1,418)					5,609
Year ended June 30, 2021					701						(98)					(215)					4,067
2. Cash dividends
							Annual dividends per share					Total cash	Dividend payout	Ratio of dividends
																	to net assets
			1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
			Yen			Yen		Yen				Yen	Yen	Millions of yen	%			%
Year ended June 30, 2021		-		15.00		-				17.00	32.00		320	59.4			4.0
Year ended June 30, 2022		-		17.00		-				18.00	35.00		334	17.1			4.1
Year ending June 30, 2023		-			18.00		-				18.00	36.00			62.6
(Forecast)

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3. Forecast of consolidated financial results for the year ending June 30, 2023 (from July 1, 2022 to June 30, 2023)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit		Profit attributable to	Earnings per share
			owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	9,000	3.5	780	(11.6)	820	(12.1)		540	(72.7)	59.14
4. Notes
(1) Changes in significant subsidiaries during the year ended June 30, 2022			No
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(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:	Yes
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 June 30, 2022	10,692,700	shares	As of June 30, 2021	11,159,800	shares
Number of treasury shares at the end of the period
	As of June 30, 2022	1,632,636	shares	As of June 30, 2021	1,146,888	shares
Average number of shares during the period
	Year ended June 30, 2022	9,649,016	shares	Year ended June 30, 2021	9,941,945	shares

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Consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of June 30, 2021	As of June 30, 2022
Assets
Current assets
Cash and deposits	4,091,682	5,634,168
Accounts receivable - trade	355,698	-
Accounts receivable - trade, and contract assets	-	349,051
Accounts receivable - other	207,877	220,932
Money advanced to customers	1,474,858	1,132,312
Merchandise	1,395	1,704
Real estate for sale	92,536	171,507
Work in process	10,468	8,247
Raw materials and supplies	10,627	10,406
Other	416,799	111,397
Allowance for doubtful accounts	(1,722)	(3,339)
Total current assets	6,660,221	7,636,390
Non-current assets
Property, plant and equipment
Buildings	261,336	201,053
Accumulated depreciation	(148,396)	(105,368)
Buildings, net	112,939	95,684
Tools, furniture and fixtures	244,767	232,057
Accumulated depreciation	(208,071)	(204,547)
Tools, furniture and fixtures, net	36,695	27,509
Vehicles	1,932	-
Accumulated depreciation	(1,529)	-
Vehicles, net	402	-
Land	515,492	99,900
Leased assets	11,809	11,809
Accumulated depreciation	(5,511)	(7,873)
Leased assets, net	6,298	3,936
Total property, plant and equipment	671,828	227,031
Intangible assets
Goodwill	204,224	-
Software in progress	93,916	250,224
Other	40,672	98,721
Total intangible assets	338,813	348,945
Investments and other assets
Investment securities	5,014,121	2,145,344
Distressed receivables	894	383
Deferred tax assets	120,889	102,324
Other	168,695	164,731
Total investments and other assets	5,304,600	2,412,783
Total non-current assets	6,315,243	2,988,761
Total assets		12,975,464	10,625,151

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			(Thousands of yen)
		As of June 30, 2021	As of June 30, 2022
Liabilities
Current liabilities
Accounts payable - trade	189,313	164,560
Accounts payable - other	281,504	297,934
Income taxes payable	344,811	692,654
Customer deposits received	658,815	641,150
Deposits received	54,309	55,283
Advances received	367,875	321,882
Provision for bonuses	62,040	52,997
Provision for bonuses for directors (and other officers)	10,128	9,520
Provision for shareholder benefit program	5,974	8,055
Other	433,216	222,557
Total current liabilities	2,407,988	2,466,595
Non-current liabilities
Retirement benefit liability	188,740	193,965
Deferred tax liabilities	1,464,889	479,236
Other	8,717	2,170
Total non-current liabilities	1,662,346	675,371
Total liabilities	4,070,335	3,141,966
Net assets
Shareholders' equity
Share capital	908,886	972,383
Capital surplus	1,100,036	727,333
Retained earnings	3,945,832	5,580,378
Treasury shares	(459,582)	(1,187,197)
Total shareholders' equity	5,495,172	6,092,898
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	3,290,312	1,262,307
Total accumulated other comprehensive income	3,290,312	1,262,307
Share acquisition rights	119,644	127,978
Total net assets	8,905,128	7,483,184
Total liabilities and net assets		12,975,464	10,625,151

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Thousands of yen)
		Fiscal year ended	Fiscal year ended
		June 30, 2021	June 30, 2022
Net sales	8,519,101	8,696,650
Cost of sales	6,382,834	6,462,030
Gross profit	2,136,266	2,234,619
Selling, general and administrative expenses
Remuneration for directors (and other officers)	69,867	72,657
Salaries and allowances	427,216	432,576
Provision for bonuses	33,024	29,320
Provision for bonuses for directors (and other officers)	10,128	12,220
Provision of allowance for doubtful accounts	(1,198)	1,617
Retirement benefit expenses	1,102	1,192
Amortization of goodwill	34,339	25,501
Other	725,683	777,052
Total selling, general and administrative expenses	1,300,161	1,352,137
Operating profit	836,104	882,482
Non-operating income
Interest and dividend income	44,195	40,105
Commission income	2,376	986
Subsidy income	12,073	8,103
Other	13,159	4,647
Total non-operating income	71,804	53,841
Non-operating expenses
Interest expenses	604	415
Commission for purchase of treasury shares	-	1,026
Amortization of business commencement expenses	543	-
Other	522	1,895
Total non-operating expenses	1,670	3,337
Ordinary profit	906,239	932,986
Extraordinary income
Gain on sale of investment securities	7,218	1,903,068
Gain on sale of shares of subsidiaries and associates	-	51,494
Gain on reversal of share acquisition rights	3,613	5,453
Total extraordinary income	10,832	1,960,016
Extraordinary losses
Loss on sale of non-current assets	10	-
Loss on retirement of non-current assets	6,110	336
Retirement contributions for directors	51,300	-
Impairment losses	25,163	7,758
Total extraordinary losses	82,584	8,095
Profit before income taxes	834,486	2,884,907
Income taxes - current	299,379	935,425
Income taxes - deferred	(240)	(26,658)
Total income taxes	299,138	908,766
Profit	535,347	1,976,141
Profit attributable to owners of parent		535,347	1,976,141

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