Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

May 13, 2022

Summary of Consolidated Financial Results

for the Year Ended March 31, 2022 [Japan GAAP]

Name of Company:

Startia Holdings, Inc.

Stock Code:

3393

Stock Exchange Listing:

Tokyo Stock Exchange

URL:

https://www.startiaholdings.com/

Representative

Title:

Representative Director and President & Group CEO

Name:

Hideyuki Hongo

Contact Person

Title:

Director, Group Operating Officer

Name:

Takao Uematsu

Tel:

+81-(0)3-5339-2109

Date of regular general meeting of shareholders:

June 23, 2022 (tentative)

Date of commencement of dividend payment:

June 24, 2022 (tentative)

Date of filing of securities report:

June 23, 2022 (tentative)

Supplementary documents for financial results:

Yes

Financial results briefing:

Yes (for securities analysts, institutional investors and media

representatives)

(Yen in millions, rounded down)

1. Consolidated financial results for the fiscal year ended March 31, 2022 (April 1, 2021 - March 31, 2022)

(1) Result of operations (Consolidated)

(Percentage figures represent year-on-year changes)

Net sales

Operating profit

Ordinary profit

Profit (loss) attributable

to owners of parent

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Fiscal year ended March 2022

16,011

20.2

344

-

553

687.7

958

-

Fiscal year ended March 2021

13,324

4.3

21

(97.0)

70

(90.9)

(130)

-

Note: Comprehensive income

Fiscal year ended March 31, 2022:

1,042 million yen (yoy - %)

Fiscal year ended March 31, 2021:

(66) million yen (yoy - %)

Earnings per share

Diluted EPS

Return on

Return on asset

Ratio of operating

equity

(ROA)

profit to net sales

Yen

Yen

%

%

%

Fiscal year ended March 2022

100.02

-

21.8

5.5

2.2

Fiscal year ended March 2021

(13.25)

-

(2.8)

0.8

0.2

Reference: Share of profit (loss) of entities accounted for using equity method

Fiscal year ended March 31, 2022:

68 million yen

Fiscal year ended March 31, 2021:

1 million yen

(Note) Diluted profit per share is not shown because there are no latent shares with a dilutive effect

(2) Consolidated financial position

Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen

%

Yen

As of March 31, 2022

11,378

4,233

37.1

484.26

As of March 31, 2021

8,790

4,577

52.1

463.06

Reference: Shareholders' equity

As of March 31, 2022:

4,226 million yen

As of March 31, 2021:

4,577 million yen

― 1 ―

(3) Consolidated cash flow

Cash flows from

Cash flows from

Cash flows from

Increase/decrease in

cash and cash

operating activity

investing activity

financing activity

equivalents

Million yen

Million yen

Million yen

Million yen

Fiscal year ended March 2022

(118)

(359)

276

3,055

Fiscal year ended March 2021

(189)

(703)

722

3,245

2. Dividends

Annual dividends

Aggregate

Payout ratio

Dividends/

End of 1Q

End of 2Q

End of 3Q

End of FY

Annual

amount

(Consolidated)

net assets

(annual)

(Consolidated)

Yen

Yen

Yen

Yen

Yen

Million

%

%

yen

Fiscal year ended March 2021

-

3.00

-

7.00

10.00

98

-

2.1

Fiscal year ended March 2022

-

4.00

-

10.00

14.00

131

14.0

3.0

Fiscal year ending March 2023

-

5.00

-

7.00

12.00

-

(forecast)

Note: Breakdown of the year-end

dividend for the fiscal year ended March 2022

Ordinary dividend: 7.00 yen

Commemorative dividend: 3.00 yen

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023 (April 1, 2022 - March 31, 2023)

(Percentage figures represent year-on-year changes)

Net sales

Operating profit

Ordinary profit

Profit attributable to

Earnings

owners of parent

per share

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Yen

First half

8,600

23.0

270

111.7

270

(0.6)

162

(58.9)

18.56

Full year

18,000

12.4

700

103.0

700

26.4

420

(56.2)

48.12

Notes:

  1. Changes in significant subsidiaries during the period (Changes in specific subsidiaries accompanied by changes in the scope of consolidation): Yes

Newly included: One (Company name) Startia Lead, Inc.

Excluded:

  1. Changes in accounting policies, changes in accounting estimates, and restatements
    1. Changes in accounting policies accompanying revisions in accounting standards and other regulations: Yes
    2. Changes other than in (a): None
    3. Changes in accounting estimates: None
    4. Restatements: None
  3. Number of outstanding shares (common shares)
    1. Total number of issued shares at the end of the period (including treasury shares)

As of March 31, 2022:

10,240,400 shares

As of March 31, 2021:

10,240,400 shares

(b) Number of treasury shares at the end of the period

As of March 31, 2022:

1,511,719 shares

As of March 31, 2021:

355,582 shares

(c) Average number of shares during the period

Fiscal year ended March 31, 2022: 9,582,718 shares

Fiscal year ended March 31, 2021: 9,858,719 shares

(Note) The number of treasury shares at the end of the period includes the Company's shares held by the trust account regarding the stock benefit trust (BBT・J-ESOP) (326,600 shares for the fiscal year ended March 2022 and 355,500 shares for the fiscal year ended March 2021). In addition, the number of the Company's shares held by the trust account regarding the stock benefit trust (BBT・J-ESOP) was included in the number of treasury shares, which was to be deducted from the calculation of the average number of shares during the period (336,162 shares for the fiscal year ended March 2022 and 381,618 shares for the fiscal year ended March 2021).

― 2 ―

(Reference) Overview of non-consolidated financial results

1. Non-consolidated financial results for the fiscal year ended March 31, 2022 (April 1, 2021 - March 31, 2022)

(1) Result of operations (Non-consolidated)

(Percentage figures represent year-on-year changes)

Operating revenue

Operating profit

Ordinary profit

Profit (loss)

Million yen

%

Million yen

%

Million yen

%

Million yen

%

Fiscal year ended March 2022

838

(24.4)

(109)

-

(55)

-

232

-

Fiscal year ended March 2021

1,109

10.2

132

-

130

-

(10)

-

Earnings per share

Diluted EPS

Yen

Yen

Fiscal year ended March 2022

24.24

-

Fiscal year ended March 2021

(1.07)

-

(Note) Diluted profit per share is not shown because there are no latent shares with a dilutive effect

(2) Non-consolidated financial position

Total assets

Net assets

Equity ratio

Net assets per share

Million yen

Million yen

%

Yen

As of March 31, 2022

7,798

2,556

32.7

292.19

As of March 31, 2021

7,000

3,629

51.8

367.14

Reference: Shareholders' equity

As of March 31, 2022:

2,550 million yen

As of March 31, 2021:

3,629 million yen

  • This financial report is not subject to the audit conducted by certified public accountants or auditing firms.
  • Explanation of the proper use of these earnings forecasts and other matters (Note on forward-looking statements)
    The forward-looking statements such as earnings forecasts shown in this report are based on information currently available and certain assumptions that the Company regards as reasonable. The Company cautions that these statements do not guarantee future achievements. Actual results of operations may differ significantly from forward-looking statements for a number of reasons. Please refer to "1. Overview of results of operations (4) Outlook for the fiscal year ending March 2023" on page 10 for the suppositions that form the assumptions for earnings forecasts and cautions concerning the use thereof.

― 3 ―

1. Overview of results of operations

(1) Overview of results of operations in the fiscal year under review

During the consolidated fiscal year under review, the outlook for economic activities in Japan became uncertain due to the combination of the re-expansion of new coronavirus infections, the tapering of monetary easing in the United States and other developed countries, soaring crude oil prices, the shortages of supply of semiconductors and other products, and the further tensions in the situation in Ukraine.

In this business environment, there is the urgent need for management reforms using IT in the industries to which the Startia Group belongs, due to the introduction of teleworking and the progress of environmental arrangements for a digital shift to cope with COVID-19. While demand for IT-related investments increased in areas like digital transformation (DX), a cautious stance on such investments continues to be seen amid the unclear environment.

In the Digital Marketing business, the Company provides "Cloud CIRCUS," a digital marketing tool, which helps customer companies to "increase and nurture their customers," as a subscription model (recurring billing type), working to increase the number of customer acquisitions and ARR (annual recurring revenue).

In the IT Infrastructure business, the Group has been establishing solid relationships with the customer base of small and medium-size enterprises, or SMEs, and supported them to improve their productivity consistently by proposing and providing solutions to those customers. In a bid to lead their operations in a better direction, the Group uses IT technologies that cover core and indispensable facilities at offices and support for office work.

In the fiscal year under review, while we were affected by the partial self-restraint on economic activities due to the effects of COVID-19, customers began some business activities to cope with the situation amid the pandemic and the era after it. Both the Digital Marketing business and IT Infrastructure business performed well compared to the previous fiscal year. In addition, as of November 1, 2021, the Company's wholly owned subsidiary, Startia Lead, Inc., took over the IT infrastructure business operated by YOSHIDA STORE (Main office: Fukushima Prefecture, "YOSHIDA STORE") and Sharp Document 21yoshida (Main office: Miyagi Prefecture, "SD21"). With the business acquisition, the Startia Group could expand its customers and sales in the IT Infrastructure business.

As a result, net sales for the fiscal year under review totaled 16,011,043 thousand yen (up 20.2% from the previous fiscal year).

The cost of sales was 9,171,092 thousand yen (up 22.1% from the previous fiscal year). The year-on-year rise was mainly due to the increase in sales, particularly a rise in manufacturing costs stemming from development investment in the Digital Marketing business.

Selling, general and administrative expenses were 6,495,144 thousand yen (up 12.1% from the previous fiscal year). This was mainly due to an increase in expenses from advertising investments centered on TV commercials in the Digital Marketing business and a rise in personnel expenses due to an increase in personnel, a rise in personnel expenses in the IT Infrastructure business due to an increase in personnel, and an increase in SG&A expenses due to the aforementioned transfer of the IT infrastructure business in November 2021.

As a result, operating profit was 344,806 thousand yen (compared with 21,678 thousand yen in the previous fiscal year).

― 4 ―

Ordinary profit was 553,766 thousand yen (up 687.7% from the previous fiscal year), mainly due to an increase in equity in earnings of affiliates by virtue of the strong performance of equity-method affiliates and a gain on investment in an investment partnership.

In addition, extraordinary profit totaled 760,091 thousand yen (extraordinary profit of 12,133 thousand yen in the previous fiscal year). There was gain of 416,552 thousand yen in July 2021 from the sale of affiliate company shares in connection with the establishment of a joint venture company, and in August, we reported gain of 148,199 thousand yen from the sale of a portion of investment securities we had held. Moreover, in December, we reported gain of 185,340 thousand yen from the sale of a portion of investment securities we had held in connection with the listing of those shares.

Profit before income taxes was 1,313,858 thousand yen (compared to 62,084 thousand yen in the previous fiscal year). Income taxes paid after application of tax effect accounting were 355,404 thousand yen (up 84.5% from the previous fiscal year). As a result, net profit attributable to owners of parent was 958,454 thousand yen (compared to net loss of 130,581 thousand yen in the previous fiscal year).

― 5 ―

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STARTIA Inc. published this content on 20 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 June 2022 05:13:01 UTC.