Linical : Consolidated Financial Results for the Nine Months Ended December 31, 2021 (Japanese GAAP)

[REFERENCE TRANSLATION]

Please note that this translation is to be used solely as reference and the financial statements in this material are unaudited. In case of any discrepancy between this translation and the Japanese original, the latter shall prevail.

This translation is subject to change without notice. Linical Co., Ltd. shall accept no responsibility or liability for damage or loss caused by any error, inaccuracy, misunderstanding, or changes with regard to this translation.

	Consolidated Financial Results
	for the Nine Months Ended December 31, 2021
	(Japanese GAAP)
	February 14, 2022
Company name	：Linical Co., Ltd.
Stock Listing	：Tokyo Stock Exchange
Code No.	：2183
URL	：https://www.linical.co.jp/
Representative	：Kazuhiro Hatano, President & Chief Executive Officer
Contact	：Akihiro Takahashi, Executive Vice President, Chief Financial Officer

Scheduled date of filing of quarterly report

: February 14, 2022

Scheduled date of start of dividend payment

: －

Preparation of supplementary materials for the quarterly

: No

financial statements

Holding of presentation for the quarterly financial results

: No

（All amounts are rounded down to the nearest million yen）

1．Consolidated Financial Results for the Nine Months Ended December 31, 2021

（April 1, 2021 to December 31, 2021）

(1)Consolidated Financial Results (cumulative)

（% figures show year-on-year change）

Net sales

Operating income

Ordinary income

Profit attributable to

owners of parent

Nine Months Ended

(¥ million)

change(％)

(¥ million)

change(％)

(¥ million)

change(％)

(¥ million)

change(％)

December 31, 2021

8,613

14.4

836

302.9

846

683.8

524

234.1

December 31, 2020

7,532

△8.2

207

△76.1

107

△86.1

157

△60.6

（Note） Comprehensive income

Nine Months Ended December 31, 2021:

¥673million (278.8%)

Nine Months Ended December 31, 2020:

¥177 million (△52.7%)

Net income per share

Diluted net income

per share

Nine Months Ended

(¥)

(¥)

December 31, 2021

23.24

－

December 31, 2020

6.96

－

(2)Consolidated Financial Position

Total assets

Net assets

Shareholders'

Net asset per

equity ratio

share

(¥ million)

(¥ million)

(％)

(¥)

As of December 31, 2021

15,336

6,057

39.5

268.20

As of March 31, 2021

15,280

5,712

37.4

252.92

（Reference）Shareholder's equity: As of December 31, 2021:	¥6,057 million
As of March 31, 2021:	¥5,712 million

2．Dividends

				Annual dividends per share (¥)
		1st Quarter End		2nd Quarter End		3rd Quarter End	Fiscal	Total
				Year End
Year Ended March 31, 2021		－	0.00		－	14.00	14.00
Year Ending March 31, 2022		－	0.00		－
Year Ending March 31,							14.00	14.00
2022(Forecast)

(Note）Change in the dividend forecast from the most recent announcement: No

3．Forecast of Consolidated Financial Result for the Year Ending March 31, 2022

(April 1, 2021 to March 31, 2022)

（% figures show year-on-year change）

	Net sales		Operating income
	(¥ million)	％	(¥ million)	％
Full year	10,700	4.1	683	50.6

The forecast of Ordinary income and Profit attributable to owners of parent are undetermined since there are many uncertain factors such as exchange rate fluctuations.

(Note）Change in forecasts of consolidated financial results from the most recent announcement: No

※ Notes
(1)Changes	in significant	subsidiaries during the period(changes in specified	：No
subsidiaries that caused changes in scope of consolidation)
New:	-	(Company Name)	-
Exclusion:	-	(Company Name)	-
(2)Adoption of accounting	methods specific to the	preparation of quarterly	：No
consolidated	financial statements

(3)Changes in accounting policies, accounting estimates and restatements

1)Changes in accounting policies resulting from the revision of the accounting standards and other regulations

2)Changes in accounting policies other than 1) 3)Changes in accounting estimates 4)Restatements

(4)Number of issued shares (Common share)

(a)Number of issued shares at the end of the period (including treasury shares)

：Yes

：No

：No

：No

As of	December 31, 2021
As of	March 31, 2021

(b) Number of treasury shares at the end of the period

As of	December 31, 2021
As of	March 31, 2021

1. Average number of shares during the period Nine Months Ended December 31, 2021 Nine Months Ended December 31, 2020

：24,740,000 shares

：24,740,000 shares

：2,153,564 shares

：2,153,564 shares

：22,586,436 shares

：22,586,510 shares

• This release is outside the scope of the external auditor's quarterly review procedure.
• Explanation on appropriate use of forecast and other special items

This material contains business forecast and other forward-looking statements which are based on available information and certain assumptions that are considered reasonable at the time of preparation. Various factors may cause actual results, etc. to be materially different from those expressed in these forward-looking statements.

Consolidated Balance Sheets

			(Thousands of yen)
		As of March 31, 2021	As of December 31, 2021
Assets
Current assets
Cash and deposits	5,084,201	5,557,893
Accounts receivable - trade	2,982,090	-
Accounts receivable - trade and contrac	-	3,138,747
Prepaid expenses	153,407	199,415
Advances paid	1,183,907	950,163
Other	355,957	167,304
Allowance for doubtful accounts	△36,850	△32,870
Total current assets	9,722,712	9,980,653
Non-current assets
Property, plant and equipment	701,164	660,998
Intangible assets
Goodwill	3,463,418	3,308,168
Other	188,469	162,183
Total intangible assets	3,651,888	3,470,351
Investments and other assets
Investment securities	294,423	369,095
Long-term prepaid expenses	4,368	6,027
Guarantee deposits	449,803	436,197
Deferred tax assets	456,286	413,119
Total investments and other assets	1,204,882	1,224,440
Total non-current assets	5,557,935	5,355,790
Total assets		15,280,647	15,336,444

Consolidated Balance Sheets

				(Thousands of yen)
			As of March 31, 2021	As of December 31, 2021
Liabilities
Current liabilities
Notes payable - trade			-	211
Short-term borrowings			610,799	600,000
Current portion of long-term borrowings	539,976	539,976
Accounts payable - other			665,588	679,574
Accrued expenses			455,003	411,898
Income taxes payable			203,409	78,152
Accrued consumption taxes			38,793	47,317
Advances received			1,909,343	2,092,502
Deposits received			635,639	766,670
Provision for bonuses			177,114	104,440
Other			98,155	143,362
Total current liabilities			5,333,824	5,464,108
Non-current liabilities
Long-term borrowings			3,073,542	2,668,560
Lease obligations			468,192	429,339
Retirement benefit liability	645,066	679,511
Other			47,400	37,204
Total non-current liabilities	4,234,202	3,814,615
Total liabilities			9,568,027	9,278,724
Net assets
Shareholders' equity
Share capital			214,043	214,043
Retained earnings			6,142,987	6,339,391
Treasury shares			△657,461	△657,461
Total shareholders' equity		5,699,568	5,895,973
Accumulated other comprehensive income
Valuation difference on	available-for-		11,084	50,357
sale securities
Foreign currency translation adjustment	△1,451	106,334
Remeasurements of defined benefit plans		3,418	5,054
Total accumulated other	comprehensive	13,052	161,747
income
Total net assets			5,712,620	6,057,720
Total liabilities and net assets		15,280,647	15,336,444

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Nine months ended	Nine months ended
		December 31, 2020	December 31, 2021
Net sales	7,532,256	8,613,651
Cost of sales	5,552,087	5,934,911
Gross profit		1,980,168	2,678,739
Selling, general and administrative expenses		1,772,515	1,842,072
Operating profit		207,653	836,666
Non-operating income
Interest income	10,052	423
Gain on valuation of investment securities	10,674	-
Foreign exchange gains	-	24,311
Insurance claim income	22,560	-
Total non-operating income		43,287	24,734
Non-operating expenses
Interest expenses	11,486	10,979
Foreign exchange losses	129,533	-
Loss on valuation of investment securities	-	2,781
Other	1,977	1,561
Total non-operating expenses		142,997	15,322
Ordinary profit		107,943	846,079
Extraordinary income
Settlement recieved	-	※１ 160,486
Total extraordinary income		-	160,486

Extraordinary losses Arbitration related expenses Information security expenses Settlement money

Total extraordinary losses

Profit (loss) before income taxes Income taxes - current

Income taxes - refund

Income taxes - deferred

※２ 107,673	※２ 136,594
-	※４ 99,053
※３ 134,630	-
242,303	235,648
△134,359	770,917
39,335	230,399
△285,122	-
△45,695	15,623

Total income taxes	△291,482	246,023
Profit	157,122	524,893
Profit attributable to owners of parent	157,122	524,893