Financial

Summary of Financial Results for Second Quarter of Fiscal Year Ended December 31, 2023

Published by KLab

Summary

KLab Inc. reported a sharp contraction in its first‑half operating performance for FY2023, with revenue falling 35.8 % to ¥5,369 million from ¥8,357 million in the same period of FY2022. Operating income turned into a loss of ¥573 million, compared with a ¥447 million loss in FY2022, largely due to higher cost of sales and reduced gross profit. Net income declined further, reaching a loss of ¥392 million versus a ¥343 million loss previously. The company’s equity base weakened, with shareholders’ equity dropping from ¥13,154 million to ¥12,859 million and the equity ratio falling slightly from 62.9 % to 64.1 %. Cash and cash equivalents decreased to ¥4,443 million, while current liabilities rose, reflecting a tighter liquidity position. Geographically the results are confined to Japan, with no foreign operations reported. The fiscal year covered January 1–June 30, 2023, and the report is based on Japanese GAAP. The company disclosed no changes to major subsidiaries or accounting estimates, though it applied the Implementation Guidance on Fair Value Measurement from Q1 FY2023. No dividends were declared for FY2022 or FY2023, and the company stated that it would not provide a full-year forecast until further progress is made. Methodologically, the figures derive from consolidated financial statements prepared under Japanese GAAP, with no external audit noted. The report includes detailed segment information, showing a decline in the Game Business revenue and an impairment loss of ¥410 million on software assets. Overall, KLab’s first‑half performance reflects a significant downturn in profitability and liquidity compared with the prior year.

From the report

Summary of Financial Results for Second Quarter of Fiscal Year Ended December 31, 2023 (Japanese GAAP) (Consolidated) evail. This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Name of listed company: KLab Inc. Securities code: 3656 Representative: [Name] Hidekatsu Morita Contact: [Name] Kazuyuki Takata Scheduled filing date for securities report: Scheduled date for dividends payment: Supplementary information for quarterly results: Information meeting for quarterly financial report: August 8, 2023 Stock exchange listing: Tokyo Stock Exchange Prime Market URL: https://www.klab.com/en/ [Title] Representative Director, President and CEO [Title] Senior Managing Director TEL: +81-3 -5771-1100 August 8, 2023 － Yes https://www.klab.com/en/ir/library/ Yes *Institutional investors and analysts only (Amounts of less than one million yen are rounded down unless otherwise stated.) 1. Consolidated Operating Performance for First Half of FY2023 (January 1, 2023 – June 30, 2023 ) (1) Consolidated Operating Results (year-to-date) (% represents rate of increase or decrease over same period of previous fiscal year) Revenue Operating income Ordinary income Profit attributable to owners of parent Million yen % Million yen % Million yen % Million yen % First half of FY2023 5,369 (35.8) (57 3) － (33 6) － (39 1) － First half of FY2022 8,357 (32.3) (446) － 111 － (3 42) － Note: Comprehensive income First half of FY2023: (29 2) million yen ―% First half of FY2022: (479) million yen ―%

of parent Million yen % Million yen % Million yen % Million yen % First half of FY2023 5,369 (35.8) (57 3) － (33 6) － (39 1) － First half of FY2022 8,357 (32.3) (446) － 111 － (3 42) － Note: Comprehensive income First half of FY2023: (29 2) million yen ―% First half of FY2022: (479) million yen ―% Net income Diluted net income per share per share Yen Yen First half of FY2023 (9. 68) － First half of FY2022 (9. 02) － (2) Consolidated Financial Status Total assets Net assets Equity ratio Million yen Million yen % First half of FY2023 20,006 12,859 64.1 FY2022 20,859 13,153 62.9 Reference: Shareholders’ equity First half of FY2023: 12,830 million yen FY2022: 13, 123 million yen 2. Dividends Annual dividends End of Q1 End of Q2 End of Q3 Year End Total Yen Yen Yen Yen Yen FY2022 ― 0.00 ― 0.00 0.00 FY2023 ― 0.00 FY2023 (Forecast) ― 0.00 0.00 Note: Revisions to the most recently announced dividend forecast: No 3. Consolidated Operating Performance Forecasts for FY2023 (January 1, 20 23 – December 31, 2023 ) The consolidated operating performance forecasts for FY2023 will not be disclosed due to difficulty in reasonably calculating forecasts. It is company policy to disclose calculations as soon as possible based on future progress.

■ Explanatory Notes (1) Changes to major subsidiaries for first half of FY2023: No (2) Application of special accounting treatment: Yes Note: Refer to “Consolidated Financial Statements and Related Notes” in section “(3) Notes Related to Consolidated Financial Statements (Application of Special Accounting Treatment Specific to Preparation of Quarterly Consolidated Financial Statements)” on page 5 of Supporting Information. (3) Changes to accounting policies, estimates, and restatements ① Changes to accounting policies due to revision of accounting standards: Yes ② Changes other than ①: No ③ Changes to accounting estimates: No ④ Restatements: No (4) Number of outstanding shares (common shares) ① Period end outstanding shares First half of 41,092,200 shares FY2022 41,092,200 shares (including treasury shares) FY2023 ② Period end treasury shares First half of 641, 531 shares FY2022 641, 531 shares FY2023 ③ Average outstanding shares First half of 40,450,669 shares First half of 37,991,403 shares during the period FY2023 FY2022 ■ Financial statements are not subject to audits by certified public accountants or audit firms. ■ Note regarding the appropriate usage of forecasts and other special instructions (Notes on forward-looking statements) The earnings forecast and other forward-looking statements contained in this report are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. Actual results may differ materially from these forecasts for various of reasons.

ents) The earnings forecast and other forward-looking statements contained in this report are based on information currently available to the Company and on certain assumptions deemed to be reasonable by the Company. Actual results may differ materially from these forecasts for various of reasons. (Method of obtaining supplementary materials on quarterly financial results) For an overview of the financial results, please refer to the quarterly financial results presentation slides posted on the Company website. https://www.klab.com/en/ir/library/presentations/

Supporting Information INDEX Consolidated Financial Statements and Related Notes 2 (1) Consolidated Balance Sheets 2 (2) Consolidated Statements of Income and Comprehensive Income 3 (3) Notes Related to Consolidated Financial Statements 5 (Notes Related to Ongoing Concern Assumptions) 5 (Notes in Case of Significant Change in Shareholders’ Equity) 5 (Application of Special Accounting Treatment Specific to Preparation of Quarterly Consolidated Financial Statements) 5 (Change in Accounting Policy) 5 (Segment Information and Other Information) 6

Consolidated Financial Statements and Related Notes (1) Consolidated Balance Sheets (In thousands of yen) <thead> <th colspan="3"></th> <th>FY2022 (Dec. 31, 2022)</th> <th>Second quarter of FY2023 (Jun. 30, 2023)</th> </thead> <td colspan="3">Assets</td> <td></td> <td></td> <td></td> <td colspan="2">Current assets</td> <td></td> <td></td> <td></td> <td></td> <td>Cash and deposits</td> <td>6,017,468</td> <td>4,442,920</td> <td></td> <td></td> <td>Accounts receivable</td> <td>1,768,227</td> <td>1,527,296</td> <td></td> <td></td> <td>Income taxes receivable</td> <td>10,274</td> <td>－</td> <td></td> <td></td> <td>Other</td> <td>2,576,297</td> <td>2,268,946</td> <td></td> <td></td> <td>Allowance for doubtful accounts</td> <td>(28,649)</td> <td>(38,469)</td> <td></td> <td></td> <td>Total current assets</td> <td>10,343,618</td> <td>8,200,693</td> <td></td> <td colspan="2">Non-current assets</td> <td></td> <td></td> <td></td> <td></td> <td>Property, plant, and equipment</td> <td>216,210</td> <td>204,209</td> <td></td> <td></td> <td>Intangible assets</td> <td></td> <td></td> <td></td> <td></td> <td>Goodwill</td> <td>733,161</td> <td>688,727</td> <td></td> <td></td> <td>Software</td> <td>55,620</td> <td>86,756</td> <td></td> <td></td> <td>Software in progress</td> <td>4,023,684</td> <td>5,329,420</td> <td></td> <td></td> <td>Other</td> <td>672</td> <td>2,002</td> <td></td> <td></td> <td>Total intangible assets</td> <td>4,813,138</td> <td>6,106,907</td> <td></td> <td></td> <td>Investments and other assets</td> <td></td> <td></td> <td></td> <td></td> <td>Investment securities</td> <td>2,893,484</td> <td>3,222,378</td>

Pages: 9
Words: 2,236
Format: PDF
Type: Financial

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