Consolidated Financial Results for the Year Ended December 31, 2022

[Japanese GAAP]

February 14, 2023

Company name:

Golf Digest Online Inc.

Stock exchange listing:

Tokyo

Code number:

3319

URL:

https://www.golfdigest.co.jp

Representative:

Nobuya Ishizaka

President and CEO

Contact:

Ryo Nakamura

CFO

Phone:

03-5656-2888

Scheduled date of Annual General Meeting of Shareholders:

March 29, 2023

Scheduled date of commencing dividend payments:

March 30, 2023

Scheduled date of filing annual securities report:

March 29, 2023

Availability of supplementary briefing material on annual financial results:

Yes

Schedule of annual financial results briefing session:

Yes

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Fiscal Year Ended December 31, 2022 (January 01, 2022, to December 31, 2022)

(1) Consolidated Operating Results

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Fiscal year ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

December 31, 2022

46,090

16.4

1,189

(30.3)

(175)

-

339

(67.2)

December 31, 2021

39,594

17.5

1,706

103.4

1,715

89.0

1,035

296.1

(Note) Comprehensive income:

Fiscal year ended December 31, 2022:

Fiscal year ended December 31, 2021:

¥

654 million

[

(46.4) %]

¥

1,221 million

[

762.8%]

Basic earnings per

Diluted earnings per

Rate of return on

Ordinary profit to

Operating profit to

share

share

equity

total assets ratio

net sales ratio

Fiscal year ended

Yen

Yen

%

%

%

December 31, 2022

16.44

16.43

7.6

(0.5)

2.6

December 31, 2021

56.68

-

15.1

8.6

4.3

(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended December 31, 2022: Fiscal year ended December 31, 2021:

(2) Consolidated Financial Position

  • - million
  • - million

Total assets

Net assets

Capital adequacy ratio

Net assets per share

As of

Million yen

Million yen

%

Yen

December 31, 2022

43,459

1,598

3.6

(245.32)

December 31, 2021

21,851

7,411

33.9

405.17

(Reference) Equity:

As of December 31, 2022:

¥

1,573

million

As of December 31, 2021:

¥

7,403

million

（Note）The "Net assets per share" for the fiscal year ended December 31, 2022 is calculated by deducting from the total net assets the amount to be paid in for Class A preferred shares, which have different rights from those of common shares and the amount of preferred dividend.

(3) Consolidated Cash Flows

Cash flows from

Cash flows from

Cash flows from

Cash and cash

equivalents at the end

operating activities

investing activities

financing activities

of period

Fiscal year ended

Million yen

Million yen

Million yen

Million yen

December 31, 2022

1,372

(12,753)

11,914

2,421

December 31, 2021

3,919

(3,580)

(372)

2,904

2. Dividends

Annual dividends

Total

Payout

Dividends

to net

ratio

dividends

assets

1st

2nd

3rd

Year-end

Total

(consolidated)

quarter-end

quarter-end

quarter-end

(consolidated)

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

December 31, 2021

-

4.00

-

5.50

9.50

173

16.8

2.5

December 31, 2022

-

4.00

-

5.50

9.50

173

57.8

11.9

Fiscal year ending

December 31, 2023

-

4.00

-

5.50

9.50

-

(Forecast)

（Note）The above-mentioned "Cash dividends" refers to the status of dividends on common shares. For information on the status of dividends on class shares (unlisted) with different relationship of interest from the common shares, see "Cash dividends on class shares" below.

3. Consolidated Financial Results Forecast for the Fiscal Year Ending December 31, 2023 (January 01, 2023, to December 31, 2023) (% indicates changes from the previous corresponding period.)

Profit attributable to

Basic

Net sales

Operating profit

Ordinary profit

earnings per

owners of parent

share

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

Full year

53,000

15.0

2,050

72.3

1,226

-

550

62.1

8.50

* Notes:

  1. Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): No
  2. 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) above: No
    3. Changes in accounting estimates: No
    4. Retrospective restatement: No
  4. Total number of issued shares (common shares)
    1. Total number of issued shares at the end of the period (including treasury shares):

December 31, 2022:

18,274,000

shares

December 31, 2021:

18,274,000

shares

2) Total number of treasury shares at the end of the period:

December 31, 2022:

70,393

shares

December 31, 2021:

390

shares

3) Average number of shares during the period:

Fiscal Year ended December 31, 2022:

18,231,589

shares

Fiscal Year ended December 31, 2021:

18,273,644

shares

(Reference) Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Fiscal Year Ended December 31, 2022 (January 01, 2022, to December 31, 2022)

(1) Non-consolidated Operating Results

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Net income

Fiscal year ended

Million yen

%

Million yen

%

Million yen

%

Million yen

%

December 31, 2022

26,608

(1.1)

1,968

10.8

557

(68.8)

281

(76.2)

December 31, 2021

26,916

4.0

1,777

(4.4)

1,784

(0.5)

1,180

4.3

Basic earnings per share

Diluted earnings per share

Fiscal year ended

Yen

Yen

December 31, 2022

13.25

13.24

December 31, 2021

64.62

-

(2) Non-consolidated Financial Position

Total assets

Net assets

Capital adequacy ratio

Net assets per share

As of

Million yen

Million yen

%

Yen

December 31, 2022

37,008

14,885

40.2

484.56

December 31, 2021

14,007

8,841

63.1

483.45

(Reference) Equity:

As of December 31, 2022:

¥

14,860 million

As of December 31, 2021:

¥

8,834 million

  • Consolidated financial results (Japanese GAAP) are not subject to audit.
  • Summaries for relevant use of forecasts and other specific affairs the forward-looking statements described in this document including results forecasts, etc., are based on information currently available to Golf Digest Online Inc. and certain assumptions that are deemed to be reasonable as of the date of the release of this document. Golf Digest Online Inc. makes no warranty as to the achievability of the forecasts. For the basis of presumption of the results forecast, please refer to "1. Overview of Results of Operations, Etc., (4) Future Outlook" on page 3 of the attached document.

(Reference) Cash dividends on class shares

The following provides a breakdown of the dividends per share related to class shares (Class A preferred shares) with different relationship of interest from the common shares.

Annual dividends

1st

2nd

3rd

Year-end

Total

quarter-end

quarter-end

quarter-end

Fiscal year ended

Yen

Yen

Yen

Yen

Yen

December 31, 2022

-

-

-

-

-

Fiscal year ending

December 31, 2023

-

-

-

7,242.43

7,242.43

(Forecast)

(Note) Class A preferred shares were issued on November 25, 2022.

Table of Contents

1.Overview of Results of Operations, Etc

2

(1)Overview of

Results of Operations for the Fiscal Year under Review

2

(2)Overview of

Financial Position for the Fiscal Year under Review

2

(3)Overview of Cash Flows for the Fiscal Year under Review

3

(4)Future Outlook…

3

2.Basic Views on Selection of Accounting Standards

4

3.Consolidated Financial Statements

5

(1)Consolidated

Balance Sheets

5

(2)Consolidated Statements of Income and Comprehensive Income

7

(3)Consolidated Statements of Changes in Net Assets

9

(4)Consolidated Statements of Cash Flows

13

(5)Notes to the Consolidated Financial Statements

15

(Notes on Going Concern Assumption)…

15

(Changes in accounting policies) …

15

(Segment Information, etc.)

16

(Per Share Information) …

18

(Significant

Subsequent Events)

19

1

1. Overview of Results of Operations, Etc.

(1) Overview of Results of Operations for the Fiscal Year under Review

During the fiscal year under review (January 1, 2022, to December 31, 2022), the coronavirus ("COVID-19") situation gradually improved and consumption activity slowly returned to normal. However, economic uncertainty increased, chiefly due to rapid exchange rate fluctuations as well as global supply chains disruption and accelerating global inflation against the backdrop of the Russia-Ukraine war.

In the environment surrounding the Internet, markets such as those for e-commerce and Internet-related services continued to expand. Meanwhile, digital technologies, notable examples of which are those for IoT and AI, continued to evolve, advancing digitization in numerous fields. In the golf market, the demands of golfers were changing day by day, including the permeation of a play style adapted to the new lifestyle required given the influence of COVID-19.

In this environment, the Golf Digest Online Group (the "GDO Group") offered greater playing comfort and pleasure to golfers as a group of IT service providers specializing in golf, with overwhelming information content and the capacity to provide specialized golf services as its strengths. Furthermore, with the aim of meeting new demand and creating new demand for golf, in accordance with the basic policy of the mid-term strategic plan "LEAD THE WAY" announced in February 2021, GOLFTEC Enterprises LLC ("US GOLFTEC"), which is a consolidated subsidiary, acquired SkyTrak on August 31, 2022. (Note 1)

As a result, the Group recorded net sales of 46,090 million yen (up 16.4% year on year) during the fiscal year under review (January 1, 2022, to December 31, 2022). Meanwhile, the Group posted operating profit of 1,189 million yen (down 30.3% year on year), mainly due to expenses for the acquisition of SkyTrak and one-time expenses for the additional acquisition of equity interest in US GOLFTEC (Note 2), as well as an ordinary loss of 175 million yen (compared to ordinary profit of 1,715 million yen in the previous year), primarily reflecting the recording of foreign exchange losses. In addition, the Group posted extraordinary income of 901 million yen (compared to 51 million yen in the previous year) including a gain on the forgiveness of debt recorded by the U.S.-based subsidiary (Note 3). Consequently, profit attributable to owners of parent stood at 339 million yen (down 67.2% year on year).

From the first quarter of the fiscal year under review, the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29; the "Revenue Recognition Accounting Standard"), etc. began to be adopted. For details, please see 3. Consolidated Financial Statements and Primary Notes (5) Notes to the Consolidated Financial Statements (Changes in accounting policies).

(Note) 1. See the "Notice regarding Asset Purchase by Consolidated Subsidiary and Borrowing of Funds" dated August 10, 2022.

  1. See the "Notice regarding Additional Acquisition of Equity Interest in Consolidated Subsidiary, Issuance of Class a Preferred Shares by way of Third-party Allotment, Amendment of Articles of Incorporation, and Reduction in Amounts of Stated Capital and Capital Reserve" dated September 22, 2022.
  2. See the "Notice regarding Posting of Extraordinary Income (Gain on Forgiveness of Debt Recorded by the U.S.-Based Subsidiary)" dated February 15, 2022.

The results in each main segment are as follows.

Domestic segment

During the fiscal year under review, the domestic segment recorded net sales of 27,593 million yen (down 0.9% year on year) due to the adoption of the Revenue Recognition Accounting Standard from the beginning of the first quarter of the fiscal year under review. Segment profit stood at 2,015 million yen (up 13.4% year on year).

Overseas segment

During the fiscal year under review, the overseas segment posted net sales of 18,496 million yen (up 57.5% year on year), mainly aided by the successful implementation of a store opening strategy with a focus on strong golf-related demand. Meanwhile, the segment loss was 825 million yen (compared to a segment loss of 71 million yen a year before), chiefly owing to expenses for the acquisition of SkyTrak and one-time expenses for additional acquisition of equity interest in

US GOLFTEC.

(2) Overview of Financial Position for the Fiscal Year under Review

Looking at the financial position at the end of the fiscal year under review, total assets stood at 43,459 million yen, up

2

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Golf Digest Online Inc. published this content on 14 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 February 2023 03:17:01 UTC.