Askul CorporationTSE: 2678

Consolidated Financial Results for the Year Ended May 20, 2022

Jul 8, 2022 at 4:03 AM UTC · Issued by Askul Corporation

Disclaimer

This document is a translation of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results for the Year Ended May 20, 2022 [Japanese GAAP]*

July 1, 2022

Company name:ASKUL Corporation

Stock exchange listing: Tokyo

Code number:

2678

URL: https://www.askul.co.jp/kaisya/ir/

Representative:

Akira Yoshioka

President and chief executive officer

Contact:

Tsuguhiro Tamai

Executive officer and chief financial officer

Phone:

+81-3-4330-5130

Scheduled date of Annual General Meeting of Shareholders:

August 4, 2022

Scheduled date of commencing dividend payments:

August 5, 2022

Scheduled date of filing annual securities report:

July 29, 2022

Availability of supplementary briefing material on annual financial results:

Yes

Schedule of annual financial results briefing session:

Yes (for institutional investors and analysts)

(Amounts of less than one million yen are rounded down)

1. Consolidated Financial Results for the Fiscal Year Ended May 20, 2022 (May 21, 2021 to May 20, 2022)

(1) Consolidated Operating Results

(% indicates changes from the previous corresponding period.)

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Fiscal year ended

Million yen

May 20, 2022

428,517

1.5

14,309

2.8

14,270

3.0

9,206

18.7

May 20, 2021

422,151

5.4

13,923

57.8

13,850

60.0

7,758

37.2

(Note) Comprehensive income:	Fiscal year ended May 20, 2022:	¥9,255	million	[19.6%]
		Fiscal year ended May 20, 2021:	¥7,740	million	[35.3%]

	Basic earnings	Diluted earnings	Rate of return on	Ordinary profit to	Operating profit to
		per share	per share		equity		total assets ratio	net sales ratio

Fiscal year ended		Yen	Yen			%			%	%
May 20, 2022		90.83	90.77		15.9			7.5	3.3
May 20, 2021		75.83	75.68		14.0			7.6	3.3
(Reference) Equity in earnings (losses) of affiliated companies: Fiscal year ended May 20, 2022:	¥-	million
			Fiscal year ended May 20, 2021:	¥-	million

(Notes) 1. The Group has applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020), etc., effective the beginning of the current period. Accordingly, the above figures for the fiscal year ended May 20, 2022 indicates the amounts after the application of the said accounting standard, etc.

When calculating the figures for the fiscal year ended May 20, 2021 in accordance with the same Accounting Standard, change ratio of net sales would be 2.7%.

2. ASKUL Corporation conducted a 2-for-1 stock split of common stock on May 21, 2021. "Basic earnings per share" and "Diluted earnings per share" are calculated on the assumption that the said stock split was implemented at the beginning of the preceding fiscal year.
Consolidated Financial Position

	Total assets	Net assets	Capital adequacy ratio	Net assets per share

As of		Million yen		Million yen	%	Yen
May 20, 2022		188,024		57,271	30.2	582.43
May 20, 2021		190,107		59,203	30.9	573.57
(Reference) Equity: As of May 20, 2022:	¥56,755	million
As of May 20, 2021:	¥58,777	million

2. ASKUL Corporation conducted a 2-for-1 stock split of common stock on May 21, 2021. "Net assets per share" is calculated on the assumption that the said stock split was implemented at the beginning of the preceding fiscal year.

Disclaimer

(3) Consolidated Cash Flows

			Cash flows from			Cash flows from				Cash flows from	Cash and cash
								equivalents at the end
			operating activities			investing activities		financing activities
							of period

Fiscal year ended			Million yen				Million yen			Million yen		Million yen
May 20, 2022			17,952				(10,748)		(14,674)		58,789
May 20, 2021			15,998				(9,079)				(3,919)		66,259

2. Dividends

				Annual dividends								Payout	Dividends
									Total		to net
															ratio
	1st		2nd		3rd			Year-end		Total		dividends		assets
								(consolidated)
	quarter-end	quarter-end	quarter-end						(consolidated)

Fiscal year ended		Yen	Yen				Yen		Yen		Yen		Million yen		%	%
May 20, 2021		-	19.00				-		30.00		49.00		2,508		32.3	4.5
May 20, 2022		-	15.00				-		16.00		31.00		3,095		34.1	5.4

Fiscal year ending
May 20, 2023		-	16.00				-		16.00		32.00				33.2
(Forecast)

(Notes) 1. ASKUL Corporation conducted a 2-for-1 stock split of common stock on May 21, 2021. The actual amounts of dividends before the said stock split are described for the fiscal year ended May 20, 2021.

2. The year-end dividend forecast for the fiscal year ended May 20, 2022, announced on July 2, 2021, has been revised. For details, please see "Notice Regarding Distribution of Surplus," announced today.

3. Consolidated Financial Results Forecast for the Fiscal Year Ending May 20, 2023 (May 21, 2022 to May 20, 2023)

(% indicates changes from the previous corresponding period.)

										Profit attributable	Basic earnings
		Net sales		Operating profit	Ordinary profit	to owners of
			per share
										parent

		Million yen		%	Million yen		%	Million yen	%	Million yen		%	Yen
Full year	455,500		6.3	14,500		1.3	14,300	0.2	9,400		2.1	96.46
* Notes:
(1) Changes in significant subsidiaries during the period under review
(changes in specified subsidiaries resulting in changes in scope of consolidation): No
(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1)	Changes in accounting policies due to the revision of accounting standards: Yes
2)	Changes in accounting policies other than 1) above:				No
3)	Changes in accounting estimates:							Yes
4)	Retrospective restatement:							No

Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):

May 20, 2022:	97,518,800	shares
May 20, 2021:	102,518,800	shares

2) Total number of treasury shares at the end of the period:

May 20, 2022:	71,871	shares
May 20, 2021:	41,874	shares

3) Average number of shares during the period:
Fiscal Year ended May 20, 2022:	101,358,926	shares
Fiscal Year ended May 20, 2021:	102,303,044	shares

(Note) ASKUL Corporation conducted a 2-for-1 stock split of common stock on May 21, 2021.

"Total number of issued shares," "Total number of treasury shares," and "Average number of shares during the period" are calculated on the assumption that the said stock split was implemented at the beginning of the preceding fiscal year.

Disclaimer

(Reference) Summary of Non-consolidated Financial Results

1. Non-consolidated Financial Results for the Fiscal Year Ended May 20, 2022 (May 21, 2021 to May 20, 2022)
(1) Non-consolidated Operating Results					(% indicates changes from the previous corresponding period.)

			Net sales		Operating profit		Ordinary profit		Net income

Fiscal year ended		Million yen		%			Million yen		%		Million yen	%		Million yen	%
May 20, 2022		371,659		0.9			11,696		(3.4)	12,047	(2.0)		8,281	1.9
May 20, 2021		368,188		5.5			12,108		68.6	12,299	64.4		8,125	65.2

			Basic earnings per	Diluted earnings per
			share		share
Fiscal year ended				Yen				Yen
May 20, 2022			81.70						-
May 20, 2021			79.43				79.31
(Note)	ASKUL Corporation conducted a 2-for-1 stock split of common stock on May 21, 2021.
	"Basic earnings per share" and "Diluted earnings per share" are calculated on the assumption that the said stock split was
	implemented at the beginning of the preceding fiscal year.
(2) Non-consolidated Financial Position

			Total assets			Net assets	Capital adequacy ratio		Net assets per share

As of				Million yen				Million yen			%			Yen
May 20, 2022			168,179				55,950			33.3			574.17
May 20, 2021			173,554				58,855			33.9			574.30
(Reference) Equity: As of May 20, 2022:	¥55,950	million
		As of May 20, 2021:	¥58,852	million
(Note)	ASKUL Corporation conducted a 2-for-1 stock split of common stock on May 21, 2021. "Net assets per share" is calculated on
	the assumption that the said stock split was implemented at the beginning of the preceding fiscal year.

This Summary of Consolidated Financial Results is not subject to audit.
Notes for using forecasted information and others
Earnings forecasts and other forward-looking statements contained in this document are based on the information ASKUL has obtained to date and on certain assumptions it considers reasonable. As such, these forecasts and statements are not intended as a commitment by the Company to achieve them. Note also that actual results and other future events may differ materially from these forecasts and statements due to a variety of factors. For the assumptions on which earnings forecasts are based and notes and information on the use of earnings forecasts, see "1. Overview of Business Results, Etc. (4) Future Outlook" on Page 6 of Attached Materials.

Disclaimer

This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

○Table of Contents for Attached Materials

1. Overview of Business Results, Etc. ...............................................................................................................................	- 2 -
(1)	Overview of Business Results for the Fiscal Year under Review..............................................................................	- 2 -
(2)	Overview of Financial Condition for the Fiscal Year Under Review ..........................................................................	- 4 -
(3)	Overview of Cash Flows for the Fiscal Year under Review ......................................................................................	- 5 -
(4)	Future Outlook..........................................................................................................................................................	- 6 -
2. Basic Thinking on the Selection of Accounting Standards.............................................................................................	- 8 -
3. Consolidated Financial Statements ...............................................................................................................................	- 9 -
(1)	Consolidated Balance Sheets ..................................................................................................................................	- 9 -
(2)	Consolidated Statements of Income and Comprehensive Income .........................................................................	- 11 -
(3)	Consolidated Statements of Changes in Net Assets ..............................................................................................	- 13 -
(4)	Consolidated Statements of Cash Flows................................................................................................................	- 15 -
(5)	Notes to Consolidated Financial Statements..........................................................................................................	- 17 -
(Notes to Going Concern Assumptions) ...................................................................................................................	- 17 -
(Change in Accounting Policies)...............................................................................................................................	- 17 -
(Changes in Accounting Estimates) .........................................................................................................................	- 18 -
(Segment Information, etc.)......................................................................................................................................	- 19 -
(Per Share Information)............................................................................................................................................	- 22 -
(Significant Subsequent Events) ..............................................................................................................................	- 22 -
4. Other ...........................................................................................................................................................................	- 23 -
(1)	Change in Officers..................................................................................................................................................	- 23 -
(2)	Details of Selling, General and Administrative Expenses (Consolidated)...............................................................	- 23 -

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Disclaimer

1. Overview of Business Results, Etc.

(1) Overview of Business Results for the Fiscal Year under Review

During the fiscal year under review (from May 21, 2021 to May 20, 2022), Japan's economy saw a surge in energy prices and a rise in concerns over the trend of foreign exchange rates including the rapid depreciation of the yen and others, coupled with the negative impact of the resurgence of COVID-19 infections on corporate and consumer behavior in Japan. Accordingly, the economic outlook remains uncertain.

The e-commerce market, in which the Group operates, keeps growing as it is strongly hoped that the market will play the role of allowing shopping activities where there is reduced contact among people with new lifestyles, which has been necessitated by the spread of COVID-19. On the other hand, competition in the industry for better service quality has continued. As a result, it has become a business management issue to realize sustainable growth in sales and profits while accommodating diverse customer demands.

Under such circumstances, the Group positions the fiscal year ended May 20, 2022 as the year to cement the foothold to fulfill the Medium-term Management Plan (from the fiscal year ended May 20, 2022 to the fiscal year ending May 20, 2025). To this end, the Group has actively made capital investments, including in the establishment of the distribution center of ASKUL Tokyo DC and the new ASKUL website (Note 1), both of which will become drivers to achieve the Medium-term Management Plan.

During the fiscal year under review, the B-to-B business saw a net sales increase due to growth in sales of living supplies and MRO (Note 2) supplies, which are fields it focuses on, despite declines in special demand for infection-prevention products and in demand for office supplies, such as stationery, mainly due to changes in workstyles. On the other hand, the B-to-B business suffered a profit decrease due to a drop in the gross profit margin resulting from the fall in special demand and the incurring of rents prior to the operational start of ASKUL Tokyo DC, although the result was in line with the plan. In the B-to-C business, net sales increased due to a rise in demand for products for overseas use and strengthened promotional collaboration mainly with the Z Holdings Group. Also, the effort to improve earnings has delivered the result as planned thanks to a reduction in fixed costs accompanying the renewal of LOHACO Main Store and growth in the profit of Charm Co., Ltd., which is a consolidated subsidiary, in addition to an improvement in the variable cost ratio (real value excluding the effects of adopting "Accounting Standard for Revenue Recognition" etc.).

In the Logistics business, earnings improved significantly in part due to the expansion of the contract business of logistics, and achieved a shift from an operating loss to an operating profit in the second half of the fiscal year under review.

As a result, the financial performance of the Group for the fiscal year under review was net sales of 428,517 million yen, a 1.5% increase year on year and a 2.7% increase year on year in real terms (Note 3), operating profit of 14,309 million yen, a 2.8% increase year on year, ordinary profit of 14,270 million yen, up 3.0% year on year, and profit attributable to owners of parent of 9,206 million yen, a 18.7% increase year on year. They each reached record highs for a fiscal year.

The Group has applied the "Accounting Standard for Revenue Recognition" (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020; hereinafter referred to as the "Accounting Standard for Revenue Recognition"), etc. since the beginning of the fiscal year under review. Accordingly, net sales for fiscal year under review decreased 5,192 million yen.

Operating results by segment are outlined below. <> business>

In the B-to-B business, the mainstay business of the Group, net sales remained solid. Net sales for the fiscal year under review increased as sales grew in living supplies, such as beverages consumed in diverse workplaces; MRO supplies, such as packing materials, whose demand rose due to increasing demand for e-commerce; and long tail products whose lineups are reinforced as a key effort. This was despite declines

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