ID HOLDINGS CORPORATION Note: This document is an English translation of the "Kessan Tanshin" for the first 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 Three Months of the Fiscal Year
Ending March 31, 2023 (J-GAAP)
July 29, 2022
Company name:
Listing:
Securities code:
URL:
Company representative:
Direct inquiries to:
Scheduled date of filing of Quarterly Securities Report: Scheduled date of dividend payment:
Preparation of supplementary materials on financial results: Presentation on quarterly results:
ID Holdings Corporation
Tokyo Stock Exchange, Prime Market 4709 https://www.idnet-hd.co.jp
Masaki Funakoshi, President and Representative Director Yasuhiro Araki, Senior Officer
Manager, Corporate Strategy Department Tel: +81 3-3262-5177
August 4, 2022
－
Yes
No
(Amounts of less than ¥1 million are truncated) | ||||||||||||||||
1. Consolidated Financial Results for Q1 of FY2022 (April 1-June 30, 2022) | ||||||||||||||||
(1) Consolidated Business Results | (% indicates YoY changes) | |||||||||||||||
Net sales | Operating income | Ordinary income | Net income attributable to | |||||||||||||
owners of parent | ||||||||||||||||
¥ million | % | ¥ million | % | ¥ million | % | ¥ million | % | |||||||||
Q1 FY2022 | 7,295 | 11.1 | 630 | 115.6 | 668 | 109.9 | 372 | 160.9 | ||||||||
Q1 FY2021 | 6,565 | － | 292 | － | 318 | － | 142 | － | ||||||||
Note: Comprehensive income | Q1 FY2022 | ¥440 million | (254.7%) | Q1 FY2021 ¥124 million | (－%) | |||||||||||
Net income | Diluted net income | EBITDA | EPS before amortization | |||||||||||||
per share | per share | of goodwill | ||||||||||||||
¥ | ¥ | ¥ million | % | ¥ | % | |||||||||||
Q1 FY2022 | 22.48 | － | 779 | 76.3 | 29.18 | 97.0 | ||||||||||
Q1 FY2021 | 8.33 | 8.29 | 442 | － | 14.81 | － | ||||||||||
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 Q1 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 quarter under review is not listed, as the Group has no potential shares.
- Consolidated Financial Position
Total assets | Net assets | Equity ratio | |
¥ million | ¥ million | % | |
Q1 FY2022 | 15,620 | 9,544 | 60.8 |
FY2021 | 16,238 | 9,446 | 57.9 |
Reference: EquityQ1 FY2022 ¥9,499 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 | － | ||||
FY2022 (forecast) | 20.00 | － | 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 | 66.31 | ||||
(full fiscal year) | |||||||||||||
EPS before | |||||||||||||
EBITDA | amortization of | ||||||||||||
goodwill | |||||||||||||
¥ million | % | ¥ | % | ||||||||||
FY2022 | 2,580 | 3.5 | 93.10 | 6.1 | |||||||||
(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 10 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)
Q1 FY2022 | 18,066,453 | shares | FY2021 | 18,066,453 | shares |
Q1 FY2022 | 1,476,563 | shares | FY2021 | 1,476,462 | shares |
Q1 FY2022 | 16,590,040 | shares | Q1 FY2021 | 17,154,640 | 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 First Quarter of the Fiscal Year Ending March 31, 2023, on page 5 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 First Quarter of the Fiscal Year Ending March 31, 2023 | ||
(2) | Qualitative Information on the Consolidated Financial Position ..................................................... | - 5 - |
(3) | Qualitative Information on the Consolidated Results Forecast........................................................ | - 5 - |
2. Consolidated Financial Statements and Important Notes........................................................................ | - 6 - | |
(1) | Consolidated Balance Sheet............................................................................................................. | - 6 - |
(2) | Consolidated Statement of Income and Comprehensive Income..................................................... | - 8 - |
(Consolidated Statement of Income) ....................................................................................................... | - 8 - | |
(Consolidated First Quarter).................................................................................................................... | - 8 - | |
(Consolidated Statement of Comprehensive Income) ............................................................................. | - 9 - | |
(Consolidated First Quarter).................................................................................................................... | - 9 - | |
(3) | Notes on Consolidated Financial Statements ................................................................................. | - 10 - |
(Notes on Assumptions Regarding Going Concern) ............................................................................. | - 10 - | |
(Notes on Significant Changes (If Any) in Shareholders' Equity)........................................................ | - 10 - | |
(Changes in Accounting Policies) ......................................................................................................... | - 10 - | |
(Additional Information) ....................................................................................................................... | - 10 - | |
(Material Subsequent Events) ............................................................................................................... | - 11 - |
- 1 -
1. Qualitative Information on the First Quarter of the Fiscal Year Ending March 31, 2023
- Qualitative Information on the Consolidated Business Results
During the consolidated fiscal quarter under review (Q1 FY2022: April 1 to June 30, 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 software development; system operation management; and cybersecurity, consulting and training. Net sales jumped 11.1% from the same period of the previous fiscal year (YoY) to ¥7.295 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 more than doubled, soaring 115.6% YoY to ¥630 million, as did ordinary income, which leapt 109.9% YoY to ¥668 million. Net income attributable to owners of parent surged 160.9% YoY to ¥372 million, while EBITDA broadened 76.3% YoY to ¥779 million.
- 2 -
The Group's business consists of a single segment. Business results for each service are as follows.
(Millions of ¥) | |||||
Previous consolidated | Consolidated first | Compared with same period of | |||
previous fiscal year (YoY) | |||||
first quarter | quarter under review | ||||
(April 1, 2021 to | (April 1, 2022 to | Increase/ | Rate of | ||
June 30, 2021) | June 30, 2022) | increase/ | |||
decrease | |||||
decrease (%) | |||||
System operation | Net sales | 3,051 | 3,297 | 246 | 8.1 |
management | |||||
Gross profit | 732 | 758 | 25 | 3.5 | |
Gross profit margin | 24.0% | 23.0% | -1.0P | ― | |
Software | Net sales | 2,429 | 2,746 | 317 | 13.0 |
development | |||||
Gross profit | 509 | 611 | 101 | 20.0 | |
Gross profit margin | 21.0% | 22.3% | 1.3P | ― | |
IT infrastructure | Net sales | 600 | 593 | -6 | -1.0 |
Gross profit | 149 | 151 | 2 | 1.5 | |
Gross profit margin | 24.9% | 25.5% | 0.6P | ― | |
Cybersecurity, | Net sales | 444 | 542 | 97 | 21.9 |
consulting and | |||||
Gross profit | 128 | 150 | 21 | 17.1 | |
training | |||||
Gross profit margin | 28.8% | 27.7% | -1.1P | ― | |
Others | Net sales | 39 | 114 | 75 | 193.3 |
Gross profit | -9 | 17 | 27 | ― | |
Gross profit margin | ― | 15.0% | ― | ― | |
Total | Net sales | 6,565 | 7,295 | 730 | 11.1 |
Gross profit | 1,509 | 1,688 | 178 | 11.8 | |
Gross profit margin | 23.0% | 23.1% | 0.1P | ― | |
(i) System operation management
Orders received from existing finance-related clients swelled, while transactions expanded due to redoubling of sales efforts aimed at major IT vendors. Net sales rose 8.1% YoY to ¥3.297 billion.
(ii) Software development
Although some projects with existing finance-related clients drew to a close, sales in this category were buoyed by expanded transactions from reinforced sales efforts aimed at major IT vendors, rising orders from existing public-sector-related clients, and reopening of major projects previously postponed by existing clients related to the transportation field. Net sales improved 13.0% YoY to ¥2.746 billion.
(iii) IT infrastructure
Although transactions mounted with multiple existing clients in finance and other fields, some projects with existing clients related to communications and the public sector were concluded. Net sales dipped 1.0% YoY to ¥593 million.
- Cybersecurity, consulting and training
In addition to swelling product sales and growing order acceptance in cybersecurity, this category benefited from heightened sales in consulting. Net sales lifted 21.9% to ¥542 million.
(v) Others
Orders accepted for data entry and product sales expanded. Net sales almost tripled, rising 193.3% YoY to ¥114 million.
- 3 -
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ID - Information Development Co. Ltd. published this content on 02 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 August 2022 09:29:08 UTC.
