Consolidated Statement of Cash Flows

(Million yen)

	FY2021 (as of December 31, 2021)	FY2022 (as of December 31, 2022)
Cash flows from operating activities
Profit before income taxes	7,606	9,922
Depreciation	219	228
Amortization of goodwill	207	164
Increase (decrease) in allowance for doubtful accounts	(43)	31
Increase (decrease) in provision for bonuses	37	125
Increase (decrease) in allowance for subscription cancellations	(24)	–
Interest and dividend income	(3)	(3)
Interest expenses	7	7
Share of loss (profit) of entities accounted for using equity method	(26)	(64)
Loss on retirement of non-current assets	22	25
Loss (gain) on sale of investment securities	(20)	(69)
Loss (gain) on valuation investment securities	0	–
Loss on COVID-19	37	22
Decrease (increase) in trade receivables	(1,414)	(1,771)
Decrease (increase) in inventories	3	(17)
Decrease (increase) in accounts receivable-other	85	(8)
Increase (decrease) in trade payables	341	310
Increase (decrease) in accrued expenses	301	330
Increase (decrease) in accrued consumption taxes	519	395
Increase (decrease) in accrued enterprise taxes	38	37
Increase (decrease) in retirement benefit liability	56	68
Other, net	49	214

Subtotal

7,996

9,946

Interest and dividends received	45	3
Interest paid	(7)	(7)
Payment of loss on COVID-19	(34)	(21)
Income taxes paid	(1,639)	(3,126)
Income taxes refund	7	1

Net cash provided by (used in) operating
activities

6,368

6,796

(Million yen)

	FY2021 (as of December 31, 2021)	FY2022 (as of December 31, 2022)
Cash flows from investing activities
Purchase of property, plant and equipment	(52)	(103)
Purchase of intangible assets	(127)	(181)
Proceeds from sales of investment securities	20	186
Purchase of shares of subsidiaries resulting in change in scope of consolidation	–	(844)
Proceeds from collection of loans receivable	45	6
Other, net	14	(22)

Net cash provided by (used in) investing
activities

(99)

(958)

Cash flows from financing activities
Repayments of short-term borrowings	(80)	–
Repayments of long-term borrowings	–	(46)
Purchase of treasury shares	(554)	(907)
Dividends paid	(1,571)	(1,667)
Other, net	37	(2)

Net cash provided by (used in) financing
activities

(2,168)

(2,622)

Effect of exchange rate change on cash and cash equivalents	–	0
Net increase (decrease) in cash and cash equivalents	4,101	3,216
Cash and cash equivalents at beginning of period	13,309	17,410
Cash and cash equivalents at end of period	17,410	20,626