This earnings presentation provides management accounting details not included in the consolidated statement. Note that, as shown in the following diagram, SPARX categorizes (1) management fees, (2) performance fees, and (3) other operating revenue, while (1) ordinary expenses, (2) commissions paid, and (3) bonuses are included in operating and general expenses.
SPARX Group has set base earnings as its overriding administrative index. Base earnings demonstrate whether a business has the earning capacity needed for a sustainable, stable foundation. We use the following formula to calculate base earnings:
In financial accounting, operating profit includes one-time or additional performance fees, but these fees fluctuate considerably, according to trends in the stock market or business progress in real asset investments. Therefore,
base earnings indicate genuine earning capacity.
Financial accounting
Management accounting
Other operating
Operating
revenue
Additional profit
profit
Performance fees
Operating
Bonuses
profit
Base
Operating
earnings
revenue
Operating and
Management
Ordinary
general
expenses
fees
expenses
Commissions
4
paid
Consolidated Earnings Summary (1) Performance
・Operating revenue increased by 1.5% due to the contribution of management fee related to Mirai Creation Fund III although performance fees has decreased.
・Operating profit has increased by 2.2% due to reasons stated above, despite an increase in ordinary expense.
・Net profit has slightly increased by 0.6% due to the absence of a gain from the partial sales of investment securities which recorded in the same period of the previous fiscal year.
・Base Earning has increased by 11.7% due to recording management fees earned related to Mirai Creation Fund III.
（Unit:Millions of yen）
FY2021
FY2022
YoY change
Q1
Q1
Operating revenue
3,311
3,362
+1.5%
Operating profit
1,469
1,502
+2.2%
Net profit
1,063
1,070
+0.6%
Base earnings
1,443
1,613
+11.8%
(Note) See pages 4, 6, 36, and 41 for more on base earnings.
5
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Sparx Group Co. Ltd. published this content on 29 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2022 08:44:05 UTC.
SPARX Group Co., Ltd. is a Japan-based holding company mainly engaged in the asset management business. The Company is engaged in the asset management business for clients, including corporate pension annuities, government entities, private and trust banks and public pension funds; the provision of investment advisory services; the operation of mutual fund business, which includes the provision of various mutual funds to financial institutions and individual investors directly or through brokerage houses, banks and other intermediaries in Japan, Europe and the United States, as well as the securities business, including the provision of advisory services for investors. Through its subsidiaries, the Company is also engaged in the research and operation of foreign stocks, including Japanese, Korean and other Asian stocks.
SPARX GROUP CO., LTD. 