Supplementary Materials for
the Financial Results for Quarter One of the Fiscal Year Ending Feb. 2025
(March 2024 - February 2025)
Creating Better Communities through Communication
BELLSYSTEM24 Holdings, Inc.
July 10, 2024
Securities code: 6183
© BELLSYSTEM24 HOLDINGS, Inc.
Q1 of FY Ending Feb. 2025 Result Summary
Revenue and operating profit both fell from the same period a year earlier due to a decrease in business related to national policy matters including COVID-19, despite an increase in fundamental business.
Revenue | Operating profit | Profit attributable to | |||
owners of parent | |||||
36.8 billion yen | 2.6 billion yen | 1.7 billion yen | |||
Same period YoY | Same period YoY | Same period YoY | |||
-2.55 billion yen | -1.54 billion yen | -1.25 billion yen | |||
(-6.5%) | (-37.2%) | (-42.7%) | |||
39.24 | 39.37 | 4.28 | 4.14 | 2.94 | |
36.82 | |||||
2.56 | |||||
2.60 | 1.69 |
Q1 of FY2022 Q1 of FY2023 Q1 of FY2024 | Q1 of FY2022 Q1 of FY2023 Q1 of FY2024 | Q1 of FY2022 Q1 of FY2023 Q1 of FY2024 | |
© BELLSYSTEM24 HOLDINGS, Inc. | 2 |
Overview of Consolidated Statement of Income for Q1 of FY Ending Feb. 2025
(Unit: billions of yen)
Q1 of
FY2023
Q1 of
FY2024
Same period
YoY
YoY Change
Same period
YoY
YoY Percent
Change
Consolidated
Earnings
Forecast (Planned)
Progress
rate
Revenue | 39.37 | 36.82 | -2.55 | -6.5% | 153.00 | 24.1% | |
Fundamental business | 35.76 | 36.18 | +0.42 | +1.2% | 149.30 | 24.2% | |
Business related to COVID-19 | 3.44 | 0.53 | -2.91 | -84.6% | 3.00 | 17.6% | |
Other | 0.17 | 0.11 | -0.06 | -35.3% | 0.70 | 15.3% | |
Gross profit | 7.50 | 6.56 | -0.94 | -12.5% | 29.80 | 22.0% | |
Selling, general and administrative | -4.21 | -4.00 | +0.21 | -5.0% | -17.30 | ||
expenses | |||||||
Other income (expenses) | 0.85 | 0.04 | -0.81 | -95.4% | 0.00 | ||
Operating profit | 4.14 | 2.60 | -1.54 | -37.2% | 12.50 | 20.8% | |
Operating profit ratio | 10.5% | 7.1% | 8.2% | ||||
Share of profit (loss) of investments | 0.02 | 0.02 | ±0.00 | +0.0% | 0.14 | ||
accounted for using equity method | |||||||
Financial income/costs | -0.07 | -0.06 | +0.01 | -14.3% | -0.44 | ||
Profit attributable to owners of parent
2.94
1.69
-1.25
-42.7%
8.00
21.1%
© BELLSYSTEM24 HOLDINGS, Inc. | 3 |
Analysis of Change in Revenue for Q1 of FY Ending Feb. 2025
Revenue stood at 36.82 billion yen, down 2.55 billion yen, or 6.5%, from 39.37 billion yen in the previous fiscal year. Revenue from fundamental business increased 0.42 billion yen or 1.2% year on year.
- Despite being bolstered by the acquisition of new projects and the consolidation of consolidated subsidiaries (subsidiary in Vietnam and THINKER Inc.) for the first time, revenue increased only slightly due to lower revenue from certain large contracts which had generated much higher revenue in Q1 of the previous year.
Business related to national policy matters including COVID-19 decreased 2.91 billion yen, or 84.6%, year on year.
- Business related to COVID-19 decreased in line with expectations, while business related to other national policy matters has plateaued since the previous fiscal year.
Fundamental | Business related to | (Unit: billions of yen) |
COVID-19 and other | Other | |
business | ||
national policies | ||
39.37+0.42
-2.91
-0.0636.82
-2.55
(-6.5%)
Q1 of FY2023 | Q1 of FY2024 | |
Revenue | Revenue | |
© BELLSYSTEM24 HOLDINGS, Inc. | 4 |
Analysis of Change in Operating Profit for Q1 of FY Ending Feb. 2025
Operating profit reached 2.60 billion yen, down 1.54 billion yen or 37.2% year on year.
Gross profit fell 0.94 billion yen year on year.
- The decline is largely attributable to decreased revenue from high-revenue business related to national policy matters such as COVID-19.
- In fundamental business, progress continued to be made with the pass-through of higher costs to prices.
Selling, general and administrative expenses decreased 0.21 billion yen year on year (positive factor).
- The decline reflects lower indirect personnel expenses due to the appropriate allocation of human resources and lower equipment-related expenses.
Gross profit | SG&A expenses |
4.14
-0.94
+0.21
Gains related to step-by-step acquisition
Gains due to a change in the classification of a subsidiary in Vietnam from an equity method affiliate to a consolidated subsidiary.
-0.84
Other income | (Unit: billions of yen) |
(expenses) | |
excluding gains related to step-by-step acquisition
+0.032.60
-1.54
(-37.2%)
Q1 of FY2023 | Q1 of FY2024 | |
Operating profit | Operating profit | |
© BELLSYSTEM24 HOLDINGS, Inc. | 5 |
Analysis of Change in Profit for Q1 of FY ending Feb. 2025
Profit reached 1.69 billion yen, down 1.25 billion yen or 42.7% year on year.
The share of profit of investments accounted for using the equity method was mostly unchanged year on year.
- The share of profit of investments in TB Next Communications Co., Ltd. and Thai-based True Touch was mostly unchanged year on year.
Share of profit (loss) of | Financial | Income tax | Non-controlling | (Unit: billions of yen) | |
Operating profit | investments accounted | ||||
income/costs | expense | interests | |||
for using equity method | |||||
2.94 | ||||
-1.54 | ||||
-0.00 | +0.02 | 1.69 | ||
+0.01 | +0.26 | |||
-1.25 | ||||
(-42.7%) | ||||
Q1 of FY2023 | <> affiliates> | Q1 of FY2024 | ||
Profit | Profit | |||
- TB Next Communications Co., Ltd. (JV with Toppan: Interest of 49.0%) | ||||
- True Touch Co., Ltd. (Thailand: Interest of 49.9%) | * Profit refers to profit attributable to owners of parent. | |
© BELLSYSTEM24 HOLDINGS, Inc. | 6 |
Trends in Revenue by Client Industry in Q1 of FY Ending Feb. 2025
A breakdown of fundamental business revenue by client industry shows a year on year increase in Finance/Insurance but a year-on-year decrease in Services and Transportation/Communications.
(Unit: billions of yen)
Services
(Human resources placement, Internet services, broadcasting, electric money, code payment, point rewards service, etc.)
Revenue from human resources placement and revenue related to food delivery, which is included in Internet-related services, fell from Q1 of the previous fiscal year when sharp growth was recorded.
Transportation/Communications
(Communication carriers, providers, travel, transportation, etc.)
Revenue from communication carriers decreased as demand for services for individual customers subsided, while revenue from travel services increased on the back of growing inbound demand.
Finance/Insurance
(Banking, securities, life and non-life insurance, credit cards, etc.)
Revenue related to insurance, particularly life and non-life insurance was strong, growing partly thanks to the contribution of large spot transactions.
29.5 31.6 33.8
8.6 8.1
8.1 8.1
7.4 8.3 8.4
7.5 9.3
FY2021 | FY2022 | FY2023 | FY2024 |
32.2 | 32.3 | 30.6 | ||||||||
8.0 | 7.5 | 20.6 | 22.2 | 24.0 | ||||||
8.0 | 6.2 | |||||||||
7.3 | 5.5 | |||||||||
8.0 | 7.6 | 7.8 | 5.7 | 5.9 | 6.9 | |||||
5.6 | 6.0 | |||||||||
8.4 | 8.3 | 5.4 | 5.9 | |||||||
FY2021 | FY2022 | FY2023 | FY2024 | FY2021 | FY2022 | FY2023 | FY2024 |
Wholesale/Retail
(Mail-order sales, e-commerce, product sales services, etc.)
Revenue related to mail-order sales and e-commerce fluctuated from client to client but fell slightly overall.
19.0 18.7 17.5
4.4 4.2
4.7 4.4
4.8 4.5 4.2
4.8 4.4
FY2021 | FY2022 | FY2023 | FY2024 |
Manufacturing
(Manufacturers, food manufacturing, printing, medical care and
pharmaceuticals, etc.)
Revenue decreased mainly due to reduction of consultation business for clients with issues of higher costs.
8.3 | 9.0 | 8.3 | |||
2.4 | 1.9 | ||||
2.3 | 1.9 | 1.9 | |||
2.3 | 2.2 | ||||
2.0 | 2.3 | ||||
FY2021 | FY2022 | FY2023 | FY2024 |
Other
(Local government, electricity, gas, water, housing, real estate,
etc.)
Revenue from digital transformation support business for local governments and new energy service business increased.
6.6 | 6.8 | 7.0 | ||
1.8 | 1.7 | |||
1.7 | 1.7 | 2.0 | ||
1.5 | 1.8 | |||
1.8 | 1.9 | |||
FY2021 | FY2022 | FY2023 | FY2024 |
* Breakdown by industry of BELLSYSTEM24's non-consolidated revenue in the fundamental business from its top 300 clients
© BELLSYSTEM24 HOLDINGS, Inc. | 7 |
ITOCHU Synergy in Q1 of FY Ending Feb. 2025
Revenue based on ITOCHU Synergy decreased to 3.93 billion yen (down 0.47 billion yen or 3.2% year on year).
- Revenue decreased year on year mainly due to the completion of business under some large-scale contracts.
Revenue based on ITOCHU Synergy
(Unit: billions of yen)
16.99 | 16.03 | ||||||||||||||
14.45 | 15.16 | ||||||||||||||
4.40 | |||||||||||||||
13.17 | 3.84 | ||||||||||||||
3.66 | |||||||||||||||
3.61 | |||||||||||||||
3.48 | |||||||||||||||
3.75 | 4.35 | 3.84 | |||||||||||||
3.56 | |||||||||||||||
3.44 | |||||||||||||||
3.74 | 4.12 | 3.96 | |||||||||||||
3.63 | |||||||||||||||
3.25 | |||||||||||||||
4.01 | 4.12 | 4.40 | |||||||||||||
3.0 | 3.65 | 3.93 | |||||||||||||
FY2019 | FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | ||||||||||
1Q | 2Q | 3Q | 4Q | © BELLSYSTEM24 HOLDINGS, Inc. | 8 | ||||||||||
Overview of Consolidated Statement of Financial Position for Q1 of FY Ending Feb. 2025
(Unit: billions of yen)
Current assets
Cash and cash equivalents
Trade receivables
Non-current assets
Property, plant and equipment (excluding right-of-use assets)
Right-of-use assets
Goodwill
End of Feb. 2024
28.30
7.21
19.20
147.17
8.45
27.38
96.77
End of May. 2024
29.31
7.29
19.97
146.87
8.21
26.76
96.79
YoY Change
+1.01
+0.08
+0.77
-0.30
-0.24
-0.62
+0.02
Remarks
Total assets
Current liabilities
Borrowings
Non-current liabilities
Long-term borrowings
Other long-term financial liabilities
Equity
175.47
48.60
23.00
59.13
33.23
21.85
67.74
176.18
63.44
34.30
45.64
20.49
21.16
67.10
+0.71
+14.84
+11.30
-13.49
-12.74
-0.69
-0.64
Increase due to reclassification from long-term borrowings, etc.
Decrease due to reclassification to current portion and scheduled payment
Of which, shareholders' equity | 66.73 | 66.25 | -0.48 | Increase due to profit, decrease due to dividends |
Of which, non-controlling interest | 1.01 | 0.85 | -0.16 | Decreased due mainly to dividends from subsidiaries |
Total liabilities and equity | 175.47 | 176.18 | +0.71 | |
Ratio of shareholders' equity to total assets | 38.0% | 37.6% | -0.4% | |
Net interest-bearing debt | 49.02 | 47.50 | -1.52 | |
Net DER | 0.73 times | 0.72 times | -0.01 | |
* Shareholders' equity refers to equity attributable to owners of parent.
© BELLSYSTEM24 HOLDINGS, Inc. | 9 |
Consolidated Statement of Cash Flow for Q1 of FY Ending Feb. 2025
(Unit: billions of yen)
Profit before tax
Depreciation and amortization
Gains related to step-by-step acquisition Increase/decrease of working capital Income taxes paid
Other
Net cash provided by operating activities
FY2023
1Q
4.09
2.22
-0.84
1.22
-2.68
1.57
5.58
FY2024
1Q
2.56
2.35
－
1.86 -0.85 1.15
7.07
YoY Change
-1.53 +0.13 +0.84 +0.64 +1.83 -0.42
+1.49
Remarks
Gains due to a change in the classification of a subsidiary in Vietnam in Q1 of previous fiscal year
Capital expenditures | -0.82 | -0.62 | +0.20 | Upgrading of IT equipment and office equipment, etc. |
Business investment | -0.44 | -0.70 | -0.26 | Investment in IT company and startup in FY2024 |
Other | 0.04 | -0.05 | -0.09 | |
Net cash provided by (used in) investment | -1.22 | -1.37 | -0.15 | |
activities | ||||
Free cash flow | 4.36 | 5.70 | +1.34 | |
Increase/decrease in borrowings | 0.05 | -1.45 | -1.50 | |
Dividends paid | -2.21 | -2.21 | -0.00 | |
Repayments of lease liabilities | -1.81 | -1.76 | +0.05 | |
Other | -0.21 | -0.21 | +0.00 | |
Net cash used in financial activities
Cash and cash equivalents at end of period
-4.18
7.18
-5.63
7.29
-1.45
+0.11
* Free cash flow = Net cash provided by (used in) operating activities + Net cash provided by (used in) investment activities
© BELLSYSTEM24 HOLDINGS, Inc. | 10 |