Consolidated Statement of Cash Flows

(Million yen)

	FY2020 (as of December 31, 2020)	FY2021 (as of December 31, 2021)
Cash flows from operating activities
Profit before income taxes	6,360	7,606
Depreciation	268	219
Amortization of goodwill	201	207
Increase (decrease) in allowance for doubtful accounts	2	(43)
Increase (decrease) in provision for bonuses	21	37
Increase (decrease) in allowance for subscription cancellations	12	(24)
Interest and dividends income	(3)	(3)
Interest expenses	7	7
Share of loss (profit) of entities accounted for using equity method	(163)	(26)
Loss on retirement of non-current assets	17	22
Loss (gain) on sale of investment securities	(250)	(20)
Loss (gain) on valuation investment securities	10	0
Loss on COVID-19	62	37
Decrease (increase) in trade receivables	93	(1,414)
Decrease (increase) in inventories	23	3
Decrease (increase) in accounts receivable-other	(5)	85
Increase (decrease) in trade payables	(117)	341
Increase (decrease) in accrued expenses	(7)	301
Increase (decrease) in accrued consumption taxes	1	519
Increase (decrease) in accrued expenses	(7)	301
Increase (decrease) in accrued consumption taxes	1	519
Increase (decrease) in accrued enterprise taxes	(86)	38
Increase (decrease) in retirement benefit liability	62	56
Other, net	80	49

Subtotal

6,587

7,996

Interest and dividends received	32	45
Interest paid	(7)	(7)
Payment of loss on COVID-19	(54)	(34)
Income taxes paid	(2,580)	(1,639)
Income taxes refund	1	7

Net cash provided by (used in) operating
activities

3,979

6,368

(Million yen)

	FY2020 (as of December 31, 2020)	FY2021 (as of December 31, 2021)
Cash flows from investing activities
Purchase of property, plant and equipment	(150)	(52)
Purchase of intangible assets	(129)	(127)
Proceeds from sales of investment securities	416	20
Purchase of shares of subsidiaries resulting in change in scope of consolidation	(18)	–
Payments for sales of shares of subsidiaries resulting in change in scope of consolidation	(233)	–
Proceeds from collection of loans receivable	18	45
Proceeds from cancellation of insurance funds	17	–
Other, net	(9)	14

Net cash provided by (used in) investing
activities

(89)

(99)

Cash flows from financing activities
Repayments of long-term borrowings	–	(80)
Purchase of treasury shares	(995)	(554)
Dividends paid	(1,476)	(1,571)
Other, net	(2)	37

Net cash provided by (used in) financing
activities

(2,472)

(2,168)

Net increase (decrease) in cash and cash equivalents	1,418	4,101
Cash and cash equivalents at beginning of the period	11,811	13,309
Increase in cash and cash equivalents resulting from inclusion of subsidiaries in consolidation	80	–
Cash and cash equivalents at end of the period	13,309	17,410