Financial Highlights

(1)    Operating results
Under the mission of “Turning encounters into innovation” and the vision of “Become business infrastructure,” the Company group (the “Group”) is providing cloud-based solutions that promote digital transformation (DX) and reshape how people work, leading to encounters with people and companies that become business opportunities by using approaches that combine systems that use technology and manpower to digitize analog information with cloud software.

In the fiscal year under review, backed by the positive order situation, the Group engaged in strengthening the sales structure for Sansan and Bill One, as well as enhancing functions for each service, aiming for further growth of net sales. In Eight Business, the Group worked to increase future profitability.
Consequently, results were strong in the fiscal year under review with net sales increasing 32.8% year on year, gross profit increasing 32.0% year on year (with a gross profit margin of 85.1%). Adjusted operating profit increased 81.5% year on year mainly due to a decline in the ratio of advertising expenses to net sales, in addition to an increase in net sales. Meanwhile, ordinary profit increased 903.3% year on year mainly due to the absence of one-off expenses related to trust-type stock options recorded in the previous fiscal year, as well as the increase in adjusted operating profit. Furthermore, profit attributable to owners of parent turned into black (¥141 million of loss for the previous fiscal year) on the back of strong ordinary profit, despite the recording of loss on valuation of investment securities of ¥380 million in extraordinary losses.
 

(2)    Financial position

Assets
Total assets at the end of the fiscal year under review were ¥37,592 million, up ¥6,391 million from the end of the previous fiscal year. This was primarily due to increases of ¥3,760 million in cash and deposits, ¥1,643 million in leasehold deposits, ¥354 million in deferred tax assets, ¥280 million in prepaid expenses, and ¥213 million in goodwill, which were partially offset by decreases of ¥251 million in buildings and structures and ¥135 million in software.

Liabilities
Total liabilities at the end of the fiscal year under review were ¥22,819 million, up ¥4,809 million from the end of the previous fiscal year. This was primarily due to increases of ¥2,930 million in advances received mainly as a result of receiving a lump-sum payment for the contract term from customers, ¥710 million in long-term borrowings as a result of incremental borrowings, ¥245 million in provision for bonuses, and ¥371 million in current portion of long-term borrowings, which were partially offset by a decrease of ¥228 million in accounts payable - other.

Net assets
Net assets at the end of the fiscal year under review were ¥14,772 million, up ¥1,581 million from the end of the previous fiscal year. This was primarily due to increases of ¥192 million each in share capital and capital surplus as a result of the exercise of share acquisition rights, ¥181 million in share acquisition rights, ¥953 million in retained earnings due to the recording of profit attributable to owners of parent.
 

* Operating profit+ share-based pay ment expenses+ expenses arising from business combinations (amortization of goodwill and amortization of intangible assets)

*For more details, Supplemental Financial Data (Excel) is available.