Consolidated financial results for the Three months ended May 31, 2024

Jul 10, 2024 at 6:19 AM UTC · Issued by Bellsystem24 Holdings, Inc.

：July 11, 2024 ：―

：Yes

：No

(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 Three months ended May 31, 2024

[IFRS]

		July 10, 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 1Q earnings presentation material

Holding of 1Q earnings briefing

1. Consolidated financial results for the Three months ended May 31, 2024 (From March 1, 2024 to May 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	%
Three months ended	36,816		(6.5)	2,600		(37.2)	2,558	(37.4)	1,752	(42.1)
May 31, 2024
Three months ended	39,370		0.3)	4,139		(3.3)	4,088	1.0)	3,025	14.7)
May 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
Three months ended	1,687		(42.7)	1,777		(43.2)		22.94		22.78
May 31, 2024
Three months ended	2,944		15.1)	3,130		1.2)		40.02		39.76
May 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 May 31,2024	176,177	67,100	66,252	37.6

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	－


Fiscal year ended February 28, 2025		30.00	－	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 May 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 May 31,2024	：	215,361	shares
As of February 29, 2024	：	225,983	shares

③ Average number of shares:
Three months ended May 31, 2024	：	73,528,712	shares
Three months ended May 31, 2023	：	73,563,020	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 May 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	May 31, 2024
Assets
Current assets
Cash and cash equivalents	7,213	7,291
Trade and other receivables	19,195	19,974
Other financial assets	185	284
Other current assets	1,704	1,758

Total current assets	28,297	29,307
Non-current assets

Property, plant and equipment	35,828	34,967
Goodwill	96,772	96,794
Intangible assets	2,869	2,824
Investments accounted for using the equity method	1,688	1,612
Deferred tax assets	2,722	2,717
Other financial assets	6,989	7,677
Other non-current assets	300	279

Total non-current assets	147,168	146,870

Total assets	175,465	176,177

			(Millions of yen)
		As of	As of
		February 29, 2024	May 31, 2024
Liabilities and Equity
Liabilities
Current liabilities
Trade and other payables	5,531	5,949
Borrowings	23,000	34,300
Income taxes payable	967	903
Provisions	45	77
Liabilities for employee benefits	11,042	12,092
Other financial liabilities	6,439	6,460
Other current liabilities	1,575	3,654

Total current liabilities	48,599	63,435
Non-current liabilities

Borrowings	33,234	20,487
Provisions	3,095	3,063
Liabilities for employee benefits	712	693
Deferred tax liabilities	211	211
Other financial liabilities	21,846	21,156
Other non-current liabilities	29	32

Total non-current liabilities	59,127	45,642

Total liabilities	107,726	109,077
Equity

Common stock	27,097	27,097
Capital surplus	(3,826)	(6,033)
Other components of equity	455	479
Retained earnings	43,382	45,069
Treasury shares	(378)	(360)

Total equity attributable to owners of the parent	66,730	66,252
Non-controlling interest	1,009	848

Total equity	67,739	67,100

Total liabilities and equity	175,465	176,177

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

Revenue	39,370	36,816
Cost of sales	(31,875)		(30,259)
Gross profit	7,495	6,557
Selling, general and administrative expenses	(4,209)	(3,997)
Other income	917	43
Other expenses	(64)		(3)
Operating income	4,139		2,600
Share of profit(loss) of investments accounted for	22	21
using the equity method

Financial income	39	56
Financial costs	(112)		(119)
Income before income taxes	4,088	2,558
Income taxes	(1,063)		(806)
Net income	3,025	1,752
Net income attributable to:
Owners of the parent	2,944	1,687
Non-controlling interest	81		65
Net income	3,025	1,752
Earnings per share
（attributable to the parent）			(yen)
Basic	40.02	22.94
Diluted	39.76	22.78

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

	(Millions of yen)
Three months ended	Three months ended
May 31, 2023	May 31, 2024

Net income

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 may 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 may be reclassified to profit or loss

Total other comprehensive income, net of tax

Total comprehensive income

Comprehensive income attributable to：

Owner of the parent

Non-controlling interest

Total comprehensive income

3,0251,752

27(35)

28(23)

121	44
(44)	4

77	48

105	25

3,130		1,777

3,049	1,708
81		69
3,130		1,777

（４）Condensed Interim Consolidated Statement of Change in Equity （Unaudited）
Three months ended May 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	―		―		―	2,944		―	2,944	81			3,025
Other comprehensive	―		―	105		―		―	105		―	105
income

Total comprehensive	―		―	105	2,944		―	3,049	81			3,130
income

Share-based payments	―		―	7		―		―	7		―	7
Dividends paid	―	(2,207)		―		―		―	(2,207)	(232)			(2,439)
Disposal of treasury	―	(4)		―		―	17	13		―	13
shares

Increase (decrease) by	―		―		―		―		―		―	198			198
business combination

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

Total transaction with	―	(2,776)	7		―	17	(2,752)	(34)			(2,786)
owners

As of May 31, 2023	27,079	(1,508)	437	38,781	(268)	64,521	734			65,255

Three months ended May 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	―		―		―	1,687		―	1,687	65			1,752
Other comprehensive	―		―	21		―		―	21	4			25
income

Total comprehensive	―		―	21	1,687		―	1,708	69			1,777
income

Share-based payments	―		―	3		―		―	3		―	3
Dividends paid	―	(2,206)		―		―		―	(2,206)	(230)			(2,436)
Disposal of treasury	―	(1)		―		―	18	17		―	17
shares

Total transaction with	―	(2,207)	3		―	18	(2,186)	(230)			(2,416)
owners

As of May 31, 2024	27,097	(6,033)	479	45,069	(360)	66,252	848			67,100

（５）Condensed Interim Consolidated Statement of Cash Flows（Unaudited）
				(Millions of yen)
		Three months ended		Three months ended
		May 31, 2023		May 31, 2024
Cash flows from operating activities:

Income before income taxes	4,088	2,558
Adjustments to reconcile net income to net cash provided by
(used in) operating activities;
Depreciation and amortization	2,215	2,346
Loss (gain) on step acquisition	(838)		―
Loss on disposal or sales of property, plant and equipment	52		―
Share of (profit) loss of investments accounted for using	(22)	(21)
the equity method

Financial income	(39)	(56)
Financial cost	112	119
Decrease (increase) in trade and other receivables	383	(773)
Increase (decrease) in trade and other payable	(572)	740
Increase (decrease) in payable for consumption tax	1,413	1,891
Other, net	1,526	1,067

Sub total	8,318	7,871
Interest and dividends received	48	149
Interest paid	(106)	(106)
Income taxes paid	(2,679)	(849)

Net cash provided by (used in) operating activities	5,581	7,065
Cash flows from investing activities:

Purchase of property, plant and equipment	(622)	(483)
Purchase of intangible assets	(198)	(139)
Proceeds from purchase of share of subsidiaries resulting in	64		─
change in scope of consolidation

Purchase of marketable securities	(501)	(700)
Payments for guarantee deposits	(22)	(24)
Proceeds from guarantee deposits	81	27
Payments for asset retirement obligations	(31)	(48)
Other, net	12	0

Net cash used in investing activities	(1,217)	(1,367)

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

Increase (decrease) in short-term borrowings	800	(700)
Repayment of long-term borrowings	(750)	(750)
Dividends paid	(2,207)	(2,206)
Dividends paid to non-controlling interests	(232)	(230)
Repayments of Lease liability	(1,806)	(1,758)
Proceeds from sale of treasury shares	13	17

Net cash provided by (used in) financial activities	(4,182)	(5,627)
Effect of exchange rate change on cash and cash
3	7
equivalents


Net increase (decrease) in cash and cash equivalents	185	78
Cash and cash equivalents at the beginning of the period	6,998	7,213

Cash and cash equivalents at the end of the period	7,183	7,291