Consolidated financial results for the Six months ended August 31, 2024

Oct 9, 2024 at 6:22 AM UTC · Issued by Bellsystem24 Holdings, Inc.

：October 10, 2024

：November 12, 2024

：Yes

(Figures are rounded to the nearest million yen)

This English document was prepared for reference purpose. Should there be any discrepancy between the translation and the original Japanese text, the latter shall prevail.

Consolidated financial results for the Six months ended August 31, 2024

[IFRS]

		October 9, 2024
Company name	：BELLSYSTEM 24 Holdings, Inc.	Stock exchange listing ：Tokyo
Stock exchange code	：6183	URL ：https://www.bell24.co.jp/en/
Representative	：Hiroshi Kajiwara, President and Chief Executive Officer
Contact	：Masaaki Obayashi, Executive Officer
TEL	：+81-3-6733-0024

Scheduled date of filing of quarterly reports

Scheduled date of start of dividend payment

Preparation of 2Q earnings presentation material

Holding of 2Q earnings briefing

1. Consolidated financial results for the Six months ended August 31, 2024 (From March 1, 2024 to August 31, 2024)

Consolidated operating results

(Percentages represent year-on-year changes)

	Revenue		Operating income	Income before	Net income
		income taxes


	Millions of yen		%	Millions of yen		%	Millions of yen	%	Millions of yen	%
Six months ended	72,040		(6.1)	4,810		(26.3)	4,665	(27.4)	3,144	(32.5)
August 31, 2024
Six months ended	76,679		(2.1)	6,529		(20.2)	6,423	(17.9)	4,657	(13.3)
August 31, 2023


	Net income	Total Comprehensive	Basic earnings	Diluted earnings
	attributable to owners
	income		per share	per share
	of the parent


	Millions of yen		%	Millions of yen		%		Yen		Yen
Six months ended	3,024		(32.8)	2,846		(41.2)		41.12		40.84
August 31, 2024
Six months ended	4,501		(13.9)	4,838		(14.4)		61.20		60.80
August 31, 2023

(2) Consolidated financial position

			Total equity	Ratio of equity
	Total asset	Total equity	attributable to owners	attributable to owners
			of the parent	of the parent
	Millions of yen	Millions of yen	Millions of yen	%
As of August 31,2024	173,334	68,176	67,287	38.8

As of February 29, 2024	175,465	67,739	66,730	38.0

2．Dividend

		Dividend per share

	First	Second	Third	Fiscal	Annual
	quarter-end	quarter-end	quarter-end	year-end

	Yen	Yen	Yen	Yen	Yen
Fiscal year ended February 29, 2024	－	30.00	－	30.00	60.00
Fiscal year ended February 28, 2025	－	30.00


Fiscal year ended February 28, 2025			－	30.00	60.00
(planned)

(Note) Revision of most recently announced dividend forecasts : No

3 ．Consolidated financial results forecast for the fiscal year ending February 28, 2025 (From March 1, 2024 to February 28, 2025)

(Percentages represent changes from the same period of previous fiscal year)

											Net income	Basic
						Income before			attributable to
	Revenue		Operating income	Net income		earnings per
		income taxes		owners of the
								share
											parent

	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen		%	Millions of yen	%	Yen
Fiscal year ending	153,000		2.9	12,500	8.9	12,200	8.7	8,380		6.5	8,000	6.0	109.14
February 28, 2025

(Note) Revisions of financial forecast in the latest announcement : No

(Notes)

(1) Changes in status of significant subsidiaries during the period

(Changes in specified subsidiaries accompanying changes in scope of consolidation): No

Changes in accounting policies and accounting estimates
- Changes in accounting policies required by IFRS

Changes in accounting policies other than ① above

Changes in accounting estimates

Number of issued shares (common share)

Number of issued shares at the end of the period (including treasury shares):

As of August 31,2024	：	73,753,310	shares
As of February 29, 2024	：	73,753,310	shares

Number of treasury shares at the end of period:

As of August 31,2024	：	192,391	shares
As of February 29, 2024	：	225,983	shares

③ Average number of shares:
Six months ended August 31, 2024	：	73,539,769	shares
Six months ended August 31, 2023	：	73,547,456	shares

Disclosure regarding the execution of the quarterly review process

This quarterly financial report is outside the scope of quarterly review procedures under the Financial Instruments and Exchange Act. At the time of disclosure of this financial report, review procedures for the Quarterly Consolidated Financial Statements are in progress.

Explanation about the appropriate use of the results forecasts and other special notes

(Note on forward-looking statements, etc.)

Forward-looking statements, including the results forecasts contained in this material, are based on information currently available for the Company and certain assumptions which the Company deems reasonable. The Company does not intend to provide any guarantee on the realization on these forecasts. Actual business results August differ materially from the forecasts due to various factors.

Condensed Interim Consolidated Financial Statements

（１） Condensed Interim Consolidated Statement of Financial Position（Unaudited）

			(Millions of yen)
		As of	As of
		February 29, 2024	August 31, 2024
Assets
Current assets
Cash and cash equivalents	7,213	9,036
Trade and other receivables	19,195	18,558
Other financial assets	185	182
Other current assets	1,704	1,788

Total current assets	28,297	29,564
Non-current assets

Property, plant and equipment	35,828	32,176
Goodwill	96,772	96,718
Intangible assets	2,869	2,802
Investments accounted for using the equity method	1,688	1,687
Deferred tax assets	2,722	2,807
Other financial assets	6,989	7,319
Other non-current assets	300	261

Total non-current assets	147,168	143,770

Total assets	175,465	173,334

			(Millions of yen)
		As of	As of
		February 29, 2024	August 31, 2024
Liabilities and Equity
Liabilities
Current liabilities
Trade and other payables	5,531	5,266
Borrowings	23,000	28,300
Income taxes payable	967	1,705
Provisions	45	380
Liabilities for employee benefits	11,042	12,469
Other financial liabilities	6,439	5,974
Other current liabilities	1,575	3,497

Total current liabilities	48,599	57,591
Non-current liabilities

Borrowings	33,234	24,740
Provisions	3,095	2,781
Liabilities for employee benefits	712	685
Deferred tax liabilities	211	211
Other financial liabilities	21,846	19,117
Other non-current liabilities	29	33

Total non-current liabilities	59,127	47,567

Total liabilities	107,726	105,158
Equity

Common stock	27,097	27,097
Capital surplus	(3,826)	(6,041)
Other components of equity	455	147
Retained earnings	43,382	46,406
Treasury shares	(378)	(322)

Total equity attributable to owners of the parent	66,730	67,287
Non-controlling interest	1,009	889

Total equity	67,739	68,176

Total liabilities and equity	175,465	173,334

（２）Condensed Interim Consolidated Statement of Income（Unaudited）
			(Millions of yen)
	Six months ended		Six months ended
	August 31, 2023		August 31, 2024

Revenue	76,679	72,040
Cost of sales	(62,560)		(59,307)
Gross profit	14,119	12,733
Selling, general and administrative expenses	(8,479)	(7,977)
Other income	978	74
Other expenses	(89)		(20)
Operating income	6,529		4,810
Share of profit(loss) of investments accounted for	74	54
using the equity method

Financial income	43	55
Financial costs	(223)		(254)
Income before income taxes	6,423	4,665
Income taxes	(1,766)		(1,521)
Net income	4,657	3,144
Net income attributable to:
Owners of the parent	4,501	3,024
Non-controlling interest	156		120
Net income	4,657	3,144
Earnings per share
（attributable to the parent）			(yen)
Basic	61.20	41.12
Diluted	60.80	40.84

（３）Condensed Interim Consolidated Statement of Comprehensive Income（Unaudited）

		(Millions of yen)
	Six months ended	Six months ended
	August 31, 2023	August 31, 2024

Net income	4,657	3,144
Other comprehensive income, net of tax
Items that will not be reclassified to profit or loss

Financial assets measured at fair value through other comprehensive income

Share of other comprehensive income of investments accounted for using equity method

Total items that will not be reclassified to profit or loss

Items that August be reclassified to profit or loss

Exchange differences on translating foreign operations

Share of other comprehensive income of investments accounted for using equity method

Total Items that August be reclassified to profit or loss

Total other comprehensive income, net of tax

Total comprehensive income

0(192)

27(36)

27(228)

176(103)

(22)33

154(70)

181(298)

4,8382,846

Comprehensive income attributable to：
Owner of the parent	4,668	2,735
Non-controlling interest	170		111
Total comprehensive income	4,838		2,846

（４）Condensed Interim Consolidated Statement of Change in Equity （Unaudited）
Six months ended August 31, 2023
															(Millions	of yen)
					Equity attributable to owner of the parent				Non-
															Total
							Other
			Common		Capital			Retained		Treasury				controlling
										equity
					components				total		interests
			stock		surplus			earnings		shares
					of equity

As of March 1, 2023	27,079	1,268	325	35,837	(285)	64,224	687			64,911
Net income	―		―		―	4,501		―	4,501	156			4,657
Other comprehensive	―		―	167		―		―	167	14			181
income

Total comprehensive	―		―	167	4,501		―	4,668	170			4,838
income

Share-based payments	―	(5)	(3)		―		―	(8)		―	(8)
Exercise of share	5	5	(2)		―		―	8		―	8
acquisition rights

Dividends paid	―	(2,207)		―		―		―	(2,207)	(232)			(2,439)
Purchase of treasury	―		―		―		―	(127)	(127)		―	(127)
shares

Disposal of treasury	―	(5)		―		―	34	29		―	29
shares

Increase (decrease) by	―		―		―		―		―		―	215			215
business combination

Written put options over	―	(565)		―		―		―	(565)		―	(565)
non-controlling interests

Total transaction with	5	(2,777)	(5)		―	(93)	(2,870)	(17)			(2,887)
owners

As of August 31, 2023	27,084	(1,509)	487	40,338	(378)	66,022	840			66,862

Six months ended August 31, 2024
															(Millions	of yen)
					Equity attributable to owner of the parent				Non-
															Total
							Other
			Common		Capital			Retained		Treasury				controlling
										equity
					components				total		interests
			stock		surplus			earnings		shares
					of equity

As of March 1, 2024	27,097	(3,826)	455	43,382	(378)	66,730	1,009			67,739
Net income	―		―		―	3,024		―	3,024	120			3,144
Other comprehensive	―		―	(289)		―		―	(289)	(9)			(298)
income

Total comprehensive	―		―	(289)	3,024		―	2,735	111			2,846
income

Share-based payments	―	(7)	(19)		―		―	(26)		―	(26)
Dividends paid	―	(2,206)		―		―		―	(2,206)	(231)			(2,437)
Purchase of treasury	―		―		―		―	(0)	(0)		―	(0)
shares

Disposal of treasury	―	(2)		―		―	56	54		―	54
shares

Total transaction with	―	(2,215)	(19)		―	56	(2,178)	(231)			(2,409)
owners

As of August 31, 2024	27,097	(6,041)	147	46,406	(322)	67,287	889			68,176

（５）Condensed Interim Consolidated Statement of Cash Flows（Unaudited）

				(Millions of yen)
		Six months ended		Six months ended
		August 31, 2023		August 31, 2024
Cash flows from operating activities:

Income before income taxes	6,423	4,665
Adjustments to reconcile net income to net cash provided by
(used in) operating activities;
Depreciation and amortization	4,551	4,711
Loss (gain) on step acquisition	(838)		―
Loss on disposal or sales of property, plant and equipment	68	10
Share of (profit) loss of investments accounted for using	(74)	(54)
the equity method

Financial income	(43)	(55)
Financial cost	223	254
Decrease (increase) in trade and other receivables	2,047	621
Increase (decrease) in trade and other payable	(1,185)	(49)
Increase (decrease) in payable for consumption tax	385	1,920
Other, net	(351)	1,430

Sub total	11,206	13,453
Interest and dividends received	55	181
Interest paid	(213)	(222)
Income taxes paid	(2,647)	(849)

Net cash provided by (used in) operating activities	8,401	12,563
Cash flows from investing activities:

Purchase of property, plant and equipment	(971)	(728)
Purchase of intangible assets	(431)	(159)
Proceeds from purchase of share of subsidiaries resulting in	64		─
change in scope of consolidation

Purchase of shares of subsidiaries resulting in change in	(274)		─
scope of consolidation

Purchase of securities	(551)	(700)
Payments for guarantee deposits	(30)	(53)
Proceeds from guarantee deposits	100	87
Payments for asset retirement obligations	(31)	(84)
Other, net	12	0

Net cash used in investing activities	(2,112)	(1,637)

				(Millions of yen)
		Six months ended		Six months ended
		August 31, 2023		August 31, 2024
Cash flows from financial activities

Increase (decrease) in short-term borrowings	1,600	(700)
Proceeds from long-term borrowings	4,000	5,000
Repayment of long-term borrowings	(5,500)	(7,500)
Dividends paid	(2,207)	(2,206)
Dividends paid to non-controlling interests	(232)	(231)
Repayments of Lease liability	(3,521)	(3,476)
Proceeds from issuance of shares	7		─
Proceeds from sale of treasury shares	13	26
Purchase of treasury shares	(127)	(0)

Net cash provided by (used in) financial activities	(5,967)	(9,087)
Effect of exchange rate change on cash and cash
9	(16)
equivalents


Net increase (decrease) in cash and cash equivalents	331	1,823
Cash and cash equivalents at the beginning of the period	6,998	7,213

Cash and cash equivalents at the end of the period	7,329	9,036

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