サイバーリンクス（3683） – [Delayed][Summary]Consolidated Financial Results for the three months ended March 31, 2022[Japanese GAAP]

May 13, 2022 Consolidated Financial Results for the three months ended March 31, 2022 [Japanese GAAP] Company name: Listing: Code number: URL: Representative: Contact: Cyberlinks Co., Ltd. The Prime Market of the Tokyo Stock Exchange 3683 https://www.cyber-l.co.jp/ Tsuneo Murakami President Takayuki Torii, General Administration Manager Tel: +81-(0)50-3500-2797 Scheduled date of filing of Quarterly Report: Scheduled date of dividend payment Preparation of supplementary materials for quarterly financial results: Yes Holding of quarterly financial results meeting: May 13, 2022 – Not scheduled 1. Consolidated Financial Results for the Three Months Ended March 31, 2022（January 1, 2022 to March 31, (Amounts of less than one million yen are rounded down.) (1) Consolidated Operating Results (cumulative) (Percentages indicate rates of year-on-year change) Net sales Operating profit Ordinary profit Three months ended March 31, 2022 March 31, 2021 % (19.1) 69.5 (Note) Comprehensive income: For the three months ended March 31, 2022: ¥269 million (down 19.1% year on year) Million yen 398 469 Million yen 3,248 3,935 Million yen 400 474 % (15.6) 61.0 % (15.0) 65.1 % (17.5) 16.1 For the three months ended March 31, 2021: ¥333 million (up 69.5% year on year) Profit attributable to owners of parent Million yen 269 333 2022） Basic earnings per share Diluted earnings per share Yen 26.09 32.30 Yen 25.71 31.35 Three months ended March 31, 2022 March 31, 2021 (2) Consolidated Financial Position Total assets Net assets Equity ratio As of March 31, 2022 As of December 31, 2021 Million yen 5,601 5,418 (Reference) Shareholders’ equity: As of March 31, 2022: ¥5,522 million As of December 31, 2021: ¥5,340 million Million yen 9,980 9,682 % 55.3 55.1 ―1― 2. Dividends Annual dividends 1st quarter-end Yen 2nd quarter-end Yen 3rd quarter-end Yen Year-end Total Fiscal year ended December 31, 2021 Fiscal year ending December 31, 2022 December 31, 2022 (Forecast) (Note) Changes in dividend forecast from the most recent announcement: None 0.00 0.00 － － － － Yen 12.00 Yen 12.00 13.00 13.00 December 31, 2022) 3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2022 (January 1, 2022 to Net sales Operating profit (Percentages indicate rates of year-on-year change) Profit attributable to owners of parent Basic earnings per share Ordinary profit First-half Full-year Million yen 6,428 13,267 % (6.3) 0.2 Million yen 592 1,043 % 2.3 10.4 Million yen 592 1,046 % 1.5 9.1 Million yen 380 670 % (6.4) 3.8 Yen 36.74 64.78 (Note) Changes in financial results forecast from the most recent announcement: None ―2― Notes: (1) Changes in specific subsidiaries during the period (changes in specified subsidiaries resulting in a change in the scope of consolidation): None (2) Application of special accounting treatment in preparing the quarterly financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: Yes 2) Changes in accounting policies other than 1): None 3) Changes in accounting estimates: None 4) Retrospective restatement: None (4) Total number of issued shares (common stock) 1) Total number of issued shares at the end of the period (including treasury shares): 2) Total number of treasury shares at the end of the period: March 31, 2022: 10,559,972 shares December 31, 2021: 10,557,972 shares March 31, 2022: 215,420 shares December 31, 2021: 215,420 shares 3) Average number of shares outstanding during the period: Three Months Ended March 31, 2022: 10,343,263 shares Three Months Ended March 31, 2021: 10,323,652 shares * The quarterly financial statements are outside the scope of quarterly reviews by certified public accountants and * Explanation of the proper use of financial results forecast and other notes Disclaimer regarding forward-looking statements The forward-looking statements, including financial results forecasts, contained in this document are based on information currently available to the Company and on certain assumptions deemed to be reasonable. auditing firms. ―3― Quarterly Consolidated Financial Statements and Primary Notes (1) Consolidated Balance Sheet (Millions of yen) As of December 31, 2021 As of March 31, 2022 Assets Current assets Cash and deposits Notes and accounts receivable – trade Notes receivable–trade, accounts receivable–trade, and contract assets Lease receivables and investments in leases Merchandise and finished goods Work in process Raw materials and supplies Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures Accumulated depreciation Buildings and structures, net Land Other Accumulated depreciation Other, net Total property, plant and equipment Intangible assets Investments and other assets Total non-current assets Total assets Liabilities Current liabilities Accounts payable – trade Current portion of long-term borrowings Income taxes payable Provision for bonuses Provision for loss on order received Asset retirement obligations Other Total current liabilities Non-current liabilities Long-term borrowings Asset retirement obligations Other Total non-current liabilities Total liabilities ―4― 2,176 － 2,492 296 135 173 11 261 (0) 5,548 2,453 (1,496) 956 1,826 2,061 (1,582) 479 3,262 570 599 4,432 9,980 794 304 207 202 1 11 907 2,428 1,693 46 210 1,950 4,379 2,552 2,306 － 318 85 384 9 239 (1) 5,896 2,369 (1,480) 888 1,399 2,001 (1,546) 455 2,743 495 547 3,786 9,682 655 304 347 39 3 6 883 2,240 1,775 32 215 2,023 4,264 (Millions of yen) As of December 31, 2021 As of March 31, 2022 Net assets Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Share acquisition rights Total net assets Total liabilities and net assets 852 1,304 3,677 (311) 5,522 78 5,601 9,980 851 1,303 3,496 (311) 5,340 78 5,418 9,682 ―5― (2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income (Millions of yen) For the three months ended March 31, 2021 For the three months ended March 31, 2022 Consolidated Statement of Income Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating profit Non-operating income Interest income Dividend income Rental income from real estate Other Total non-operating income Non-operating expenses Interest expenses Other Total non-operating expenses Ordinary profit Extraordinary income Other Total extraordinary income Extraordinary losses Other Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit attributable to owners of parent 3,248 2,159 1,089 690 398 0 0 2 1 4 2 0 3 400 － － 0 0 400 192 (62) 130 269 269 3,935 2,783 1,152 682 469 0 0 2 6 9 3 1 4 0 0 0 0 474 474 200 (59) 140 333 333 ―6― Consolidated Statement of Comprehensive Income Profit Comprehensive income (Breakdown) Comprehensive income attributable to owners of parent (Millions of yen) For the three months ended March 31, 2021 For the three months ended March 31, 2022 333 333 333 269 269 269 ―7― (3) Notes to quarterly financial statements (Notes to going concern assumptions) None to be reported. (In case of significant changes to shareholders’ equity) None to be reported. (Application of special accounting treatment in preparing the quarterly financial statements) None to be reported. (Change in accounting policy) From the beginning of the first quarter of the fiscal year ending December 31, 2022, the Group has adopted the Accounting Standard for Revenue Recognition (Accounting Standard Board of Japan [ASBJ] No. 29, March 31, 2020). As a result, the Group now recognizes revenue at the time control of promised goods or services is transferred to the customer in the amount it expects to receive in exchange for the goods or services. Previously, for contracts for construction projects and custom software development, the Group applied the percentage-of-completion method for those for which the results of the proportion of work completed could be reliably confirmed and the completed-contract method for all others. However, from the first quarter of the fiscal year under review, for performance obligations to be satisfied over a period of time, except for construction and software development projects for which the period is extremely short, the Group estimates progress toward satisfying the performance obligations and recognizes revenue based on the estimated progress over a period of time. For performance obligations to be satisfied at a single point in time, the Group recognizes revenue at the time of completion of construction or software development. Progress toward satisfying performance obligations is estimated using the ratio of costs incurred to total estimated costs (the input method). Note, however, that for construction and software development contracts for which the period from the starting date of the transaction to the expected time of satisfying performance obligations is extremely short, the Group applies an alternative accounting method, and instead of recognizing revenue over a period of time, recognizes revenue at the time all performance obligations have been satisfied. The Group has applied the Accounting Standard for Revenue Recognition and other related accounting standards in accordance with the transitional treatment prescribed in the proviso of Paragraph 84 of the Accounting Standard for Revenue Recognition. The cumulative effect of retroactively applying the new accounting policy to periods prior to the beginning of the first quarter of the fiscal year under review was reflected in retained earnings at the beginning of said period, and the new accounting policy has been applied starting from the beginning balance of said period. However, in accordance with the method prescribed in the Paragraph 86 of the Accounting Standard for Revenue Recognition, the new accounting policy was not retroactively applied to contracts prior to the beginning of the first quarter of the fiscal year under review for which almost all revenue amounts were recognized based on the previous accounting standards. Further, based on the method provided in item (1) of the supplementary provisions of Paragraph 86 of the Accounting Standard for Revenue Recognition, for contracts to which changes were made prior to the beginning of the first quarter of the fiscal year under review, an accounting treatment was applied based on the contractual terms that reflected all the changes, and the cumulative effect of this application was reflected in retained earnings at the beginning of said period. As a result, in the first quarter of fiscal year ending December 31, 2022, net sales were increased by ¥98 million and cost of sales by ¥43 million, and operating profit, ordinary profit, and profit before income taxes were each increased by ¥54 million. Further, the balance of retained earnings at the beginning of the fiscal year under review rose by ¥35 million. As a result of the application of the Accounting Standard for Revenue Recognition, etc., “Notes and accounts receivable–trade” shown under the “Current assets” section of the consolidated balance sheet in the fiscal year ended December 31, 2021 is included in and shown as “Notes receivable–trade, accounts receivable–trade, and contract assets” starting from the first quarter of the fiscal year under review. Note, however, that in accordance with ―8― 3,935 － 3,935 474 3,248 － 3,248 400 the transitional treatment set forth in the Paragraph 89-2 of the Accounting Standard for Revenue Recognition, no revision was made to the consolidated balance sheet for the previous fiscal year to comply with the new representation method. Further, based on the transitional treatment prescribed in the Paragraph 28-15 of the Accounting Standard for Quarterly Financial Reporting (ASBJ No. 12, March 31, 2020), no information on the breakdown of revenue arising from contracts concluded with customers in the first quarter of the previous fiscal year has been provided. (Segment information, etc.) Segment information Three Months Ended March 31, 2021(January 1, 2021 to March 31, 2021) 1. Sales and profit by reportable segment (Millions of yen) Reportable segments Distribution Cloud Government Cloud Trust Mobile Network Total Adjustments (Note 1) Amount stated in the consolidated statement of income (Note 2) Net sales Sales to outside customers Intersegment sales and transfers Total Segment profit (loss) 2,092 3 2,096 923 42 966 104 309 (41) 879 3,935 53 3,988 523 0 879 151 0 772 120 50 3,299 460 － (53) (53) (49) － (50) (50) (60) (Note) 1. Adjustments to segment loss of ¥49 million are company-wide expenses that are not allocated to any reportable segment. Company-wide expenses mainly comprise general administrative expenses that do not belong to any reportable segment. 2. Segment profit is adjusted with ordinary profit in the quarterly consolidated statement of income. Three Months Ended March 31, 2022(January 1, 2022 to March 31, 2022) 1. Sales and profit by reportable segment (Millions of yen) Reportable segments Distribution Cloud Government Cloud Trust Mobile Network Total Adjustments (Note 1) Amount stated in the consolidated statement of income (Note 2) 1,026 1,437 772 3,248 Net sales Sales to outside customers Intersegment sales and transfers Total 41 7 1,067 1,445 Segment profit (loss) 156 237 (54) (Note) 1. Adjustments to segment loss of ¥60 million are company-wide expenses that are not allocated to any reportable segment. Company-wide expenses mainly comprise general administrative expenses that do not belong to any reportable segment. 2. Segment profit is adjusted with ordinary profit in the quarterly consolidated statement of income. 2. Change in reportable segments As stated in Change in accounting policy above, the Group has applied the Accounting Standard for Revenue Recognition, etc. from the beginning of the first quarter of the fiscal year under review and accordingly changed accounting treatment methods for revenue recognition. As a result, the Group has also changed the method of calculating profits and losses for each business segment based on the new accounting standards. 40 6 47 12 1 13 ―9― Due to this change, compared to what each figure would have been under the previous accounting standards, in the first quarter of the fiscal year under review net sales in Distribution Cloud was increased by ¥20 million and segment profit by ¥5 million; net sales in Government Cloud was increased by ¥81 million and segment profit by ¥48 million; and net sales in Mobile Network was decreased by ¥3 million while there was no impact on segment profit. (Significant subsequent events) None to be reported. ―10―