Note: This document is an English translation of the "Kessan Tanshin" for the first quarter of the fiscal year ending March 31, 2024 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, 2024 (J-GAAP)

July 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, Representative Director and Group CEO

Direct inquiries to:

Yasuhiro Araki, Corporate Officer

Manager, Corporate Strategy Department

Tel: +81 3-3262-5177

Scheduled date of filing of Quarterly Securities Report:

August 4, 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 Q1 of FY2023 (April 1-June 30, 2023)

(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 FY2023

7,819

7.2

823

30.7

884

32.3

514

37.8

Q1 FY2022

7,295

11.1

630

115.6

668

109.9

372

160.9

Note: Comprehensive income

Q1 FY2023

¥776 million

(76.2%)

Q1 FY2022

¥440 million

(254.7%)

Net income

Diluted net income

EBITDA

EPS before amortization

per share

per share

of goodwill

¥

¥

¥ million

%

¥

%

Q1 FY2023

30.96

－

973

24.8

37.65

29.0

Q1 FY2022

22.48

－

779

76.3

29.18

97.0

Note: Diluted net income per share is not listed, as the Group has no potential shares.

(2) Consolidated Financial Position

Total assets

Net assets

Equity ratio

¥ million

¥ million

%

Q1 FY2023

16,590

10,783

64.7

FY2022

17,519

10,432

59.3

Reference: EquityQ1 FY2023 ¥10,732 millionFY2022 ¥10,382 million

2. Dividends

Annual dividends

End of first quarter

End of second quarter

End of third quarter

End of fiscal period

Total

¥

¥

¥

¥

¥

FY2022

－

20.00

－

25.00

45.00

FY2023

－

FY2023 (forecast)

25.00

－

25.00

50.00

Note: Revision of most recently published dividend forecast:

No

3. Forecasts of Consolidated Results for FY2023 (April 1, 2023-March 31, 2024)

(% indicates YoY changes)

Net income

Net income

Net sales

Operating income

Ordinary income

attributable to

per share

owners of parent

¥ million

%

¥ million

%

¥ million

%

¥ million

%

¥

FY2023

32,800

5.5

2,630

8.5

2,650

5.8

1,520

8.4

91.55

(full fiscal year)

EPS before

EBITDA

amortization of

goodwill

¥ million

%

¥

%

FY2023

3,269

7.8

118.32

6.3

(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.:

No

(ii)

Changes in accounting policies other than (i):

No

(iii)

Changes in accounting estimates:

No

(iv)

Restatements:

No

  1. Number of shares outstanding (common stock)
    1. Number of shares outstanding (inclusive of treasury stock):
    2. Amount of treasury stock:
    3. Interim average number of shares (Consolidated total for the quarter)

Q1 FY2023

18,066,453

shares

FY2022

18,066,453

shares

Q1 FY2023

1,463,989

shares

FY2022

1,471,167

shares

Q1 FY2023

16,602,473

shares

Q1 FY2022

16,590,040

shares

  1. 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, 2024, 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, 2024

......................- 2 -

(1)

Qualitative Information on the Consolidated Business Results

- 2 -

(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 -

(Additional Information)

- 10 -

(Material Subsequent Events)

- 10 -

- 1 -

1. Qualitative Information on the First Quarter of the Fiscal Year Ending March 31, 2024

  1. Qualitative Information on the Consolidated Business Results

The consolidated fiscal quarter under review (Q1 FY2023: April 1 to June 30, 2023) was a period of mixed economic results. Restrictions on activity imposed in view of the COVID-19 pandemic were eased, supporting gradual economic recovery. On the other hand, resource prices rose steeply, the Japanese yen continued to decline against other currencies and monetary tightening proceeded worldwide. These trends continued to stoke concerns about economic downside risks, fueling continued uncertainty about future prospects.

Fortunately for the ID Group, a firmer footing prevailed in the information services industry, to which the Group belongs. 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.

Amid the environment just described, business results for the ID Group trended favorably in system management*; cybersecurity, consulting and training; and IT infrastructure. Net sales rose 7.2% from the same period of the previous fiscal year (YoY) to ¥7.819 billion.

Earnings results were solid across the board. Growing sales drove increased earnings, while the Group's high-marginDX-related business expanded. Operating income rose 30.7% YoY to ¥823 million, ordinary income improved 32.3% YoY to ¥884 million, and net income attributable to owners of parent leapt 37.8% YoY to ¥514 million. EBITDA increased 24.8% YoY to ¥973 million.

*Beginning with the consolidated fiscal first quarter under review, the service name "system operation management" is changed to "system management." The content of the service is unchanged.

- 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, 2022 to

(April 1, 2023 to

Increase/

Rate of

June 30, 2022)

June 30, 2023)

increase/

decrease

decrease (%)

System

Net sales

3,297

3,568

271

8.2

management

Gross profit

758

805

47

6.2

Gross profit margin

23.0%

22.6%

-0.4P

―

Software

Net sales

2,746

2,784

38

1.4

development

Gross profit

611

583

-28

-4.6

Gross profit margin

22.3%

20.9%

-1.4P

―

IT infrastructure

Net sales

593

694

100

16.9

Gross profit

151

241

90

59.5

Gross profit margin

25.5%

34.8%

9.3P

―

Cybersecurity,

Net sales

542

712

170

31.4

consulting and

Gross profit

150

235

85

57.2

training

Gross profit margin

27.7%

33.1%

5.4P

―

Others

Net sales

114

58

-56

-49.5

Gross profit

17

2

-14

-84.4

Gross profit margin

15.0%

4.6%

-10.4P

―

Total

Net sales

7,295

7,819

523

7.2

Gross profit

1,688

1,869

180

10.7

Gross profit margin

23.1%

23.9%

0.8P

―

(i) System management

New orders were received due to redoubling of sales efforts aimed at major IT vendors, while orders accepted from existing clients swelled. Net sales rose 8.2% YoY to ¥3.568 billion.

(ii) Software development

Although some projects with public-sector-related clients drew to a close, reinforced sales efforts aimed at major IT vendors led to expansion in transactions, while orders accepted from existing clients related to the financial and transportation fields swelled. Net sales grew 1.4% YoY to ¥2.784 billion.

(iii) IT infrastructure

The Group enjoyed increases in orders accepted for major projects with finance-related clients and in transactions with manufacturing-related clients. Net sales jumped 16.9% YoY to ¥694 million.

(iv) Cybersecurity, consulting and training

Orders accepted in consulting and cybersecurity swelled, boosting net sales 31.4% YoY to ¥712 million.

(v) Others

Despite expansion in orders accepted for product sales, changes in service category for some projects engendered a decline in net sales of 49.5% YoY to ¥58 million.

- 3 -

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ID - Information Development Co. Ltd. published this content on 31 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 August 2023 03:01:03 UTC.