ID HOLDINGS CORPORATION Note: This document is an English translation of the "Kessan Tanshin" for the third quarter of the fiscal year ending March 31, 2023 and is provided solely for reference purposes. In the event of any inconsistency between the Japanese and English versions, the Japanese version will govern.
Consolidated Financial Results for the First Nine Months of the Fiscal Year
Ending March 31, 2023 (J-GAAP)
January 31, 2023 | |
Company name: | ID Holdings Corporation |
Listing: | Tokyo Stock Exchange, Prime Market |
Securities code: | 4709 |
URL: | https://www.idnet-hd.co.jp |
Company representative: | Masaki Funakoshi, President and Representative Director |
Direct inquiries to: | Yasuhiro Araki, Senior Officer |
Manager, Corporate Strategy Department | |
Tel: +81 3-3262-5177 | |
Scheduled date of filing of Quarterly Securities Report: | February 3, 2023 |
Scheduled date of dividend payment: | － |
Preparation of supplementary materials on financial results: | Yes |
Presentation on quarterly results: | No |
(Amounts of less than ¥1 million are truncated)
1. Consolidated Financial Results for the First Nine Months of FY2022 (April 1-December 31, 2022)
(1) Consolidated Business Results
Net sales | Operating income | Ordinary income | Net income attributable to | ||||||||
owners of parent | |||||||||||
¥ million | % | ¥ million | % | ¥ million | % | ¥ million | % | ||||
Q3 FY2022 | 23,023 | 12.9 | 1,855 | 51.4 | 1,934 | 52.4 | 1,119 | 72.3 | |||
Q3 FY2021 | 20,396 | － | 1,225 | － | 1,269 | － | 649 | － | |||
Note: Comprehensive income | Q3 FY2022 | ¥1,336 million | (85.4%) | Q3 FY2021 ¥736 million | (－%) |
Net income | Diluted net income | EBITDA | EPS before amortization | |||||
per share | per share | of goodwill | ||||||
¥ | ¥ | ¥ million | % | ¥ | % | |||
Q3 FY2022 | 67.50 | － | 2,309 | 36.5 | 87.59 | 52.5 | ||
Q3 FY2021 | 37.97 | 37.88 | 1,692 | － | 57.44 | － | ||
Notes: 1. From the beginning of the consolidated first quarter of the previous fiscal year, the Group has applied the Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020) of the Japanese generally accepted accounting principles (J-GAAP). The numerical figures in the above Q3 FY2021 consolidated business results constitute the figures after the application of this standard. As such, YoY comparisons are not provided.
- Effective July 1, 2021, the Group executed a share split at a ratio of 1.5 new shares per previous common share. The figures for net income per share, diluted net income per share and EPS before amortization of goodwill are calculated as if this share split had occurred at the beginning of the previous consolidated fiscal year.
- Diluted net income per share during the consolidated first nine months under review is not listed, as the Group has no potential shares.
- Consolidated Financial Position
Total assets | Net assets | Equity ratio | |
¥ million | ¥ million | % | |
Q3 FY2022 | 16,328 | 10,131 | 61.7 |
FY2021 | 16,238 | 9,446 | 57.9 |
Reference: EquityQ3 FY2022 ¥10,079 millionFY2021 ¥9,400 million
2. Dividends
Annual dividends | |||||
End of first quarter | End of second quarter | End of third quarter | End of fiscal period | Total | |
¥ | ¥ | ¥ | ¥ | ¥ | |
FY2021 | － | 20.00 | － | 20.00 | 40.00 |
FY2022 | － | 20.00 | － | ||
FY2022 (forecast) | 20.00 | 40.00 | |||
Note: Revision of most recently published dividend forecast: | No |
3. Forecasts of Consolidated Results for FY2022 (April 1, 2022-March 31, 2023)
(% indicates YoY changes) | |||||||||||||
Net income | Net income | ||||||||||||
Net sales | Operating income | Ordinary income | attributable to | ||||||||||
per share | |||||||||||||
owners of parent | |||||||||||||
¥ million | % | ¥ million | % | ¥ million | % | ¥ million | % | ¥ | |||||
FY2022 | 29,000 | 4.3 | 1,950 | 4.3 | 2,000 | 4.0 | 1,100 | 5.1 | 66.30 | ||||
(full fiscal year) | |||||||||||||
EPS before | |||||||||||||
EBITDA | amortization of | ||||||||||||
goodwill | |||||||||||||
¥ million | % | ¥ | % | ||||||||||
FY2022 | 2,580 | 3.5 | 93.09 | 6.0 | |||||||||
(full fiscal year) | |||||||||||||
Note: Revision of most recently published results forecast: | No | ||||||||||||
*Notes | |||||||||||||
(1) Changes in important subsidiaries during the period | No | ||||||||||||
Changes in specified subsidiaries resulting in change in consolidation scope | |||||||||||||
(2) Adoption of special accounting treatments for quarterly consolidated financial statements: | No | ||||||||||||
(3) Changes in accounting policies, changes in accounting estimates and restatements: | |||||||||||||
(i) | Changes in accounting policies due to revisions of accounting standards, etc.: | Yes | |||||||||||
(ii) | Changes in accounting policies other than (i): | No | |||||||||||
(iii) | Changes in accounting estimates: | No | |||||||||||
(iv) | Restatements: | No |
Note: For details, please refer to (3) Notes on Consolidated Financial Statements (Changes in Accounting Policies) under Section 2. Consolidated Financial Statements and Important Notes on page 11 of the Attachment.
- Number of shares outstanding (common stock)
- Number of shares outstanding (inclusive of treasury stock):
- Amount of treasury stock:
-
Interim average number of shares
(Consolidated total for the quarter)
Q3 FY2022 | 18,066,453 | shares | FY2021 | 18,066,453 | shares |
Q3 FY2022 | 1,471,998 | shares | FY2021 | 1,476,462 | shares |
Q3 FY2022 | 16,590,487 | shares | Q3 FY2021 | 17,114,359 | shares |
Note: Effective July 1, 2021, the Group executed a share split at a ratio of 1.5 new shares per previous common share. The figures for number of shares outstanding, amount of treasury stock and interim average number of shares are calculated as if this share split had occurred at the beginning of the previous consolidated fiscal year.
- Calculation of certain management indices
- EBITDA = Operating income + depreciation + amortization of goodwill
- EPS before amortization of goodwill = Net income after adjustments* ÷ interim average number of shares
*Net income after adjustments = Net income attributable to owners of parent + amortization of goodwill
- These quarterly consolidated financial results are not subject to quarterly review by a certified public accountant or audit corporation.
-
Qualitative information relating to the appropriate use of results forecasts, and other noteworthy items
Results forecasts are estimates based on information available as of the day the results were announced. Forecasts are inherently uncertain. The actual results, etc. may be different from the forecasts because of changes in business conditions, etc. See (3) Qualitative Information on the Consolidated Results Forecast under Section 1. Qualitative Information on the Third Quarter of the Fiscal Year Ending March 31, 2023, on page 6 of the Attachment for the assumptions that form the basis of results forecasts and other things to remember when relying on results forecasts.
The ID Group has also introduced a board benefit trust (BBT) and Japanese employee stock ownership plan (J-ESOP). Company shares held by Custody Bank of Japan, Ltd. (Trust Account E) as trust property for the BBT and J-ESOP plans are included in treasury stock.
Contents
1. Qualitative Information on the Third Quarter of the Fiscal Year Ending March 31, 2023 | ||
Qualitative Information on the Consolidated Business Results | ||
(2) | Qualitative Information on the Consolidated Financial Position | - 6 - |
(3) | Qualitative Information on the Consolidated Results Forecast | - 6 - |
2. Consolidated Financial Statements and Important Notes | - 7 - | |
(1) | Consolidated Balance Sheet | - 7 - |
(2) | Consolidated Statement of Income and Comprehensive Income | - 9 - |
(Consolidated Statement of Income) | - 9 - | |
(Consolidated Cumulative Third Quarter) | - 9 - | |
(Consolidated Statement of Comprehensive Income) | - 10 - | |
(Consolidated Cumulative Third Quarter) | - 10 - | |
(3) | Notes on Consolidated Financial Statements | - 11 - |
(Notes on Assumptions Regarding Going Concern) | - 11 - | |
(Notes on Significant Changes (If Any) in Shareholders' Equity) | - 11 - | |
(Changes in Accounting Policies) | - 11 - | |
(Additional Information) | - 11 - | |
(Material Subsequent Events) | - 12 - |
- 1 -
1. Qualitative Information on the Third Quarter of the Fiscal Year Ending March 31, 2023
- Qualitative Information on the Consolidated Business Results
During the consolidated cumulative third quarter under review (Q1-3 FY2022: April 1 to December 31, 2022), the Japanese economy was beset by challenges on all sides. As vaccination against COVID-19 progressed nationwide, restrictions on activity were eased, stirring hopes that an economic recovery was in the offing. However, as the Russian invasion of Ukraine dragged on, resource prices spiked and the yen exchange rate slipped, stoking inflation. Future prospects remain stubbornly unclear. Fortunately for the ID Group, the information services industry, to which the Group belongs, is on a firmer footing. Demand for IT investment related to digital transformation (DX), an approach aimed at establishing new business models and transforming existing ones, was solid and is expected to continue to enjoy steady support. Moreover, while the impact of the COVID-19 pandemic lingers on, corporate clients' needs for IT investment, previously restrained, are continuing to bounce back.
Amid the environment just described, business results for the ID Group trended favorably in system operation management; software development; and cybersecurity, consulting and training. Net sales jumped 12.9% from the same period of the previous fiscal year (YoY) to ¥23.023 billion.
Earnings results were even more satisfying. Although cost of sales climbed as a result of Group reorganization, the Group's high- margin DX-related business expanded. As sales grew, so did earnings. Operating income soared 51.4% YoY to ¥1.855 billion, and ordinary income leapt 52.4% YoY to ¥1.934 billion. Net income attributable to owners of parent surged 72.3% YoY to ¥1.119 billion, while EBITDA broadened 36.5% YoY to ¥2.309 billion.
- 2 -
The Group's business consists of a single segment. Business results for each service are as follows.
(Millions of ¥) | |||||
Previous consolidated | Consolidated cumulative | Compared with same period of | |||
third quarter under | previous fiscal year (YoY) | ||||
cumulative third quarter | |||||
review | |||||
(April 1, 2021 to | Increase/ | Rate of | |||
(April 1, 2022 to | |||||
December 31, 2021) | increase/ | ||||
decrease | |||||
December 31, 2022) | |||||
decrease (%) | |||||
System operation | Net sales | 9,053 | 10,103 | 1,049 | 11.6 |
management | |||||
Gross profit | 2,162 | 2,210 | 47 | 2.2 | |
Gross profit margin | 23.9% | 21.9% | -2.0P | ― | |
Software | Net sales | 7,638 | 8,545 | 907 | 11.9 |
development | |||||
Gross profit | 1,655 | 1,910 | 255 | 15.4 | |
Gross profit margin | 21.7% | 22.4% | 0.7P | ― | |
IT infrastructure | Net sales | 1,911 | 1,908 | -2 | -0.1 |
Gross profit | 478 | 477 | -1 | -0.3 | |
Gross profit margin | 25.1% | 25.0% | -0.1P | ― | |
Cybersecurity, | Net sales | 1,515 | 2,122 | 607 | 40.1 |
consulting and | |||||
Gross profit | 464 | 450 | -14 | -3.2 | |
training | |||||
Gross profit margin | 30.7% | 21.2% | -9.5P | ― | |
Others | Net sales | 277 | 343 | 65 | 23.8 |
Gross profit | 103 | 40 | -63 | -61.4 | |
Gross profit margin | 37.4% | 11.7% | -25.8P | ― | |
Total | Net sales | 20,396 | 23,023 | 2,627 | 12.9 |
Gross profit | 4,866 | 5,088 | 222 | 4.6 | |
Gross profit margin | 23.9% | 22.1% | -1.8P | ― | |
(i) System operation management
Reinforced sales efforts toward major IT vendors led to expansion in transactions, while orders received from existing financial-related customers increased. Net sales lifted 11.6% YoY to ¥10.103 billion.
(ii) Software development
Reinforced sales efforts toward major IT vendors led to expansion in transactions, while previously postponed major projects with existing transport-related customers were restarted and orders from existing financial-related and public-sector-related customers grew. Net sales rose 11.9% YoY to ¥8.545 billion.
(iii) IT infrastructure
Although transactions with existing financial-related customers expanded, some projects with existing customers related to IT and the public sector wrapped up. Net sales declined 0.1% YoY to ¥1.908 billion.
- Cybersecurity, consulting and training
This category benefited from rising order acceptance in cybersecurity and growing product sales, as well as increasing sales in consulting. Net sales rose 40.1% YoY to ¥2.122 billion.
(v) Others
Although major orders received in the previous fiscal year left a gap in product sales in Q1-3, orders expanded YoY in data entry and product sales. Net sales increased 23.8% YoY to ¥343 million.
- 3 -
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ID - Information Development Co. Ltd. published this content on 31 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 February 2023 07:17:06 UTC.
