January 31, 2022

Summary of Consolidated Financial Results

for the Third Quarter of the Fiscal Year Ending March 31, 2022

(Nine Months Ended December 31, 2021)

[Japanese GAAP]

Company name:

COMTURE CORPORATION

Listing: Tokyo Stock Exchange, First Section

Stock code:

3844

URL: https://www.comture.com/en/ir/index.html

Representative:

Koichi Mukai, Chairman

Contact:

Osamu Noma, Member of the board, Executive Vice President

Tel: +(81)3-5745-9700

Scheduled date of filing of Quarterly Report:

February 4, 2022

Scheduled date of payment of dividend:

February 28, 2022

Preparation of supplementary materials for quarterly financial results:

Yes

Holding of quarterly financial results meeting:

Yes (for institutional investors and analysts)

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

1. Consolidated Financial Results for the Third Quarter Ended December 31, 2021 (April 1, 2021 - December 31, 2021)

(1) Consolidated operating results

(Percentages represent year-on-year changes)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Nine months ended Dec. 31, 2021

18,239

19.4

3,053

36.9

3,052

34.5

1,925

26.7

Nine months ended Dec. 31, 2020

15,275

(1.5)

2,230

9.9

2,269

11.5

1,519

9.2

Note: Comprehensive income (million yen):

Nine months ended Dec. 31, 2021:

1,924

(up 25.6%)

Nine months ended Dec. 31, 2020:

1,532

(up 9.9%)

Net income per share

Diluted net income per share

Yen

Yen

Nine months ended Dec. 31, 2021

60.41

-

Nine months ended Dec. 31, 2020

47.68

-

*Diluted net income per share is not presented because there were no potential shares with dilutive effects.

(2) Consolidated financial position

Total assets

Net assets

Shareholders' equity ratio

Million yen

Million yen

%

As of Dec. 31, 2021

17,561

13,522

77.0

As of Mar. 31, 2021

16,483

12,353

74.9

Reference: Shareholders' equity (million yen):

As of Dec. 31, 2021: 13,522 As of Mar. 31, 2021: 12,353

2. Dividends

Dividend per share

1Q-end

2Q-end

3Q-end

Year-end

Total

Yen

Yen

Yen

Yen

Yen

Fiscal year ended Mar. 31, 2021

7.75

7.75

7.75

7.75

31.00

Fiscal year ending Mar. 31, 2022

8.25

8.25

9.25

Fiscal year ending Mar. 31, 2022 (forecast)

11.25

37.00

Note: Revisions to the most recently announced dividend forecast: Yes

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)

(Percentages represent year-on-year changes)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Net income per

owners of parent

share

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

Full year

24,100

15.5

3,800

20.6

3,800

19.0

2,400

15.2

75.30

Note: Revisions to the most recently announced consolidated earnings forecasts: None

* Notes

(1) Changes in significant subsidiaries during the period (changes in scope of consolidation): None

Newly added: -

Excluded: -

  1. Application of special accounting methods for presenting quarterly consolidated financial statements: Yes
  2. Changes in accounting policies and accounting-based estimates, and restatements
    1. Changes in accounting policies due to revisions in accounting standards, others: Yes

2)

Changes in accounting policies other than 1) above:

None

3)

Changes in accounting-based estimates:

None

4)

Restatements:

None

(4) Number of outstanding shares (common stock)

1) Number of shares outstanding at the end of the period (including treasury shares)

As of Dec. 31, 2021:

32,241,600 shares

As of Mar. 31, 2021:

32,241,600 shares

2) Number of treasury shares at the end of the period

As of Dec. 31, 2021:

365,150 shares

As of Mar. 31, 2021:

369,020 shares

3) Average number of shares outstanding during the period

Nine months ended Dec. 31, 2021:

31,874,262 shares

Nine months ended Dec. 31, 2020:

31,873,323 shares

  • The current quarterly financial report is not subject to quarterly review by certified public accountants or auditing firms.
  • Explanation of appropriate use of earnings forecasts, and other special items
    Forecasts of future performance in this report are based on assumptions judged to be valid and information available to the Company's management at the time the materials were prepared. Actual results may differ significantly from these forecasts for a number of reasons. Please refer to "1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecast and Other Forward-looking Statements" on page 5 for forecast assumptions and notes of caution for usage.

COMTURE CORPORATION (3844) Financial Results for the Third Quarter of FY3/22

Contents of Attachments

1. Qualitative Information on Quarterly Consolidated Financial Performance

2

(1)

Explanation of Results of Operations

2

(2)

Explanation of Financial Position

4

(3)

Explanation of Consolidated Forecast and Other Forward -looking Statements

5

2. Quarterly Consolidated Financial Statements and Notes

6

(1)

Quarterly Consolidated Balance Sheet

6

(2)

Quarterly Consolidated Statements of Income and Comprehensive Income

8

(3)

Notes to Quarterly Consolidated Financial Statements

10

Going Concern Assumption

10

Significant Changes in Shareholders' Equity

10

Application of Special Accounting Methods for Presenting Quarterly Consolidated Financial Statements 10

Changes in Accounting Policies

10

Segment and Other Information

10

Additional Information

10

1

COMTURE CORPORATION (3844) Financial Results for the Third Quarter of FY3/22

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1) Explanation of Results of Operations

Companies and governments need to implement strategic innovations that utilize digital technologies, such as by creating new businesses and services and new ways for people to do their jobs. The growth of IT investments is expected to gain momentum in the digital transformation (DX) sector.

The COMTURE Group regards these trends as an opportunity for long -term growth. We are dedicated to giving customers support for their DX activities as well as altering COMTURE itself, a process we call the COMTURE Transformation (CX). Our strategy for the next 10 years, called the COMTURE NEXT 10 Strategy, is to play a key role in the business model reforms of our customers. This includes DX assistance that incorporates our own templates and solutions for the provision of added value, an activity centered on building stronger ties with global vendors.

COMTURE was one of the first companies to build systems based on Lotus Notes, SAP and other platforms. We increased the number of platforms we handle to match changes in the business climate. Today, we build systems based on AWS, Microsoft, Salesforce, ServiceNow, Pega and other cloud platforms. Services also encompass data analytics using SAS and other tools, the use of robotic process automation (RPA) tools for the efficiency and automation of business processes, and more DX-related solutions. By adding to conventional stand-alone platforms the ability to supply multi-faceted platforms, we can meet the increasingly complex needs of our customers by assembling the best possible solutions. To provide these solutions, we are encouraging our people to acquire even more advanced vendor certifications and improve skills at creat ing proposals for customers. Another priority is providing services with even more added value involving consulting and other fields.

We are using formats that combine online and face-to-face interaction for efficient sales activities and the presentation of proposals to prospective customers. Daily business reports utilize a sales force automation (SFA) system to facilitate the timely sharing of information with many people, including management. The goal is to utilize the collective knowledge of our group even more in order to raise our proposals to a higher level and strengthen sales activities. Launching new businesses faster in growing market sectors is another priority. We have started a project that covers all COMTURE businesses for the purpose of cre ating ideas based on customers' needs and then using these ideas for new businesses that can contribute to our next stage of growth.

Market conditions are favorable for receiving new orders and our highest priority is recruiting and retaining the engineers we require to handle these orders and maintain strong performance. Improving salaries and other benefits for employees is the most important point for recruiting and retaining engineers. One step was an average salary increase of 10% in the current fiscal year. We have also been increasing engagement with our workforce, such as by utilizing small groups and other forms of unrestricted R&D activities and by establishing more ties between management and employees.

We are making progress with recruiting talented new college graduates and people who have experience at other companies. We are now reinforcing recruiting activities by strengthening collaborations with recruiting agents.

In addition, we are utilizing strategic forms of collaboration with partner companies to be the first to receive information about engineers we can hire who will become productive immediately. Activities involving engineers also include support for training programs in growing market sectors. Overall, there are numerous activities under way to recruit and retain engineers.

Looking ahead to how people will do their jobs after the pandemic ends, we are creating new working styles by increasing the use of digital technologies for internal systems, offering employees the option of a hybrid format that combines telework and on-site work, shortening and staggering working times, and using internet communication tools for internal and external lines of communication.

Due to numerous measures that reflect changes in the business climate, we achieved the twelfth consecutive year of sales growth in the first nine months on an effective sales basis (see note). The result was record -high gross profit in the first nine months for the tenth consecutive year.

2

COMTURE CORPORATION (3844) Financial Results for the Third Quarter of FY3/22

Note: COMTURE started applying Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020) in the fiscal year ended March 31, 2021, which is earlier than required. Sales comparisons use the assumption that this standard had been u sed in prior fiscal years too.

In the Cloud Solutions Business, sales and the gross profit increased because of higher demand for several services. Sources of growth include the use of collaborations with Microsoft and Salesforce.com to build customer information systems, the shift of internal data systems to the cloud, primarily at large companies in the manufacturing and service sectors, and consulting and other services involving the digitalization of business processes.

In the Digital Solutions Business, sales and the gross profit increased. One reason is growth of the data analysis business, which includes anti-money laundering for financial institutions, and other activities. Growth of the data management business, such as building and maintaining infrastructures for collecting and storing large amount of data for retail companies, was another reason for the increases in sales and earnings.

In the Business Solutions Business, sales and the gross profit increased along with the growth in demand for many services. There was growth of the SAP business, including the use of SAP's S/4HANA ERP system, increasing demand for the development of IT systems for human resources, increasing demand for the use of COMTURE products for connections to the Japanese Bank s' Payment Clearing Network, and other areas of growth.

In the Platform, Operation Services Business, sales and the gross profit increased. Demand is increasing for the construction of Amazon Web Services (AWS) and other cloud environments and services for the shift of operations to the cloud. There is also growth of the business for operating cloud environments and increasing demand for the outsourcing and security support of IT system operations.

In the Digital Learning Business, sales and gross profit increased because of growth of the DX education business for cloud service certifications of Microsoft, Salesforce, ServiceNow and other companies as well as the growth of sales at a subsidiary newly consolidated in this fiscal year.

(Millions of yen)

First nine

First nine

months of

months of

Change

Change (%)

FY3/21

FY3/22

Cloud Solutions Business

Net sales

5,962

6,838

875

14.7%

Gross profit

1,352

1,744

392

29.0%

Digital Solutions Business

Net sales

1,703

2,095

391

23.0%

Gross profit

458

590

132

28.8%

Business Solutions

Net sales

4,114

4,392

277

6.8%

Business

Gross profit

880

1,001

121

13.8%

Platform, Operation

Net sales

3,315

3,704

388

11.7%

Services Business

Gross profit

817

910

93

11.4%

Digital Learning Business

Net sales

179

1,208

1,029

575.0%

Gross profit

3

325

321

9,023.0%

Activities of the business categories are as follows.

Business Category

Activities

Providing system solutions and other activities using

Cloud Solutions Business

collaborations with Microsoft, Salesforce.com, ServiceNow, Pega

and other global platformers.

Providing data analysis solutions using SAS, Informatica and

Digital Solutions Business

other big data/AI tools, support for the automation of business

processes using UiPath, Automation Anywhere and other robotic

process automation tools.

3

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Comture Corporation published this content on 03 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 February 2022 03:18:08 UTC.