Note: This document has been translated from a part of the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
Consolidated Financial Results for the Fiscal Year Ended December 31, 2020
(Under IFRS)
February 12, 2021
Company name: | Direct Marketing MiX Inc. |
Listing: | Tokyo Stock Exchange |
Securities code: | 7354 |
URL: | https://dmix.co.jp/ |
Representative: | Yuki Kobayashi, Representative Director and President, CEO |
Inquiries: | Motoyoshi Doi, Executive Officer, CFO |
TEL: | +81-6-6809-1615 |
Scheduled date of Ordinary General Meeting of Shareholders: | March 25, 2021 |
Scheduled date to commence dividend payments: | March 11, 2021 |
Scheduled date of the submission of annual securities report: | March 26, 2021 |
Preparation of supplementary material on financial results: | Yes |
Holding of financial results presentation meeting: | Yes (for institutional investors and |
analysts) |
(Yen amounts are rounded to the nearest million, unless otherwise noted.)
1. Consolidated financial results for the fiscal year ended December 31, 2020 (from January 1, 2020 to December 31, 2020)
(1) Consolidated operating results (cumulative)
(Percentages indicate year-on-year changes.)
Revenue | Operating profit | Profit before tax | Profit | |||||
Fiscal year ended December 31, 2020 December 31, 2019 | Millions of yen 22,461 17,213 | % 30.5 27.4 | Millions of yen 3,586 2,238 | % 60.3 33.4 | Millions of yen 3,504 2,142 | % 63.6 68.1 | Millions of yen 2,425 1,459 | % 66.2 77.2 |
Profit attributable to owners of parent | Total comprehensive income | Basic earnings per share | Diluted earnings per share | |||
Fiscal year ended December 31, 2020 December 31, 2019 | Millions of yen 2,425 1,459 | % 66.2 78.2 | Millions of yen 2,425 1,459 | % 66.2 77.2 | Yen 120.94 72.75 | Yen 102.51 61.32 |
Return on equity attributable to owners of parent | Ratio of profit before tax to total assets | Ratio of operating profit to revenue | |
Fiscal year ended December 31, 2020 December 31, 2019 | % 35.8 30.4 | % 18.0 12.9 | % 16.0 13.0 |
Ratio of operating profit
Reference: Share of profit (loss) of investments accounted for using equity method:
Fiscal year ended December 31, 2020: ¥ - million
Fiscal year ended December 31, 2019: ¥ - million
Note: The Company conducted a 300-for-1 share split of its common shares on July 28, 2020. "Basic earnings per share"
and "Diluted earnings per share" have been calculated assuming that the share split was conducted at the beginning of the fiscal year ended December 31, 2019.
(Reference) (Percentages indicate year-on-year changes.)
Adjusted operating profit | Adjusted profit before tax | Adjusted profit attributable to owners of parent | Adjusted EBITDA | |||||
Fiscal year ended December 31, 2020 December 31, 2019 | Millions of yen 3,676 2,300 | % 59.8 31.9 | Millions of yen 3,594 2,204 | % 63.1 64.5 | Millions of yen 2,484 1,499 | % 65.7 74.1 | Millions of yen 4,411 2,900 | % 52.1 31.1 |
(2) Consolidated financial position
Total assets | Total equity | Equity attributable to owners of parent | Ratio of equity attributable to owners of parent | Equity attributable to owners of parent per share | |
As of December 31, 2020 December 31, 2019 | Millions of yen 21,251 17,598 | Millions of yen 8,000 5,544 | Millions of yen 8,000 5,544 | % 37.6 31.5 | Yen 399.01 276.49 |
to owners of parent
(3) Consolidated cash flows
Cash flows from operating activities | Cash flows from investing activities | Cash flows from financing activities | Cash and cash equivalents at end of period | |
Fiscal year ended December 31, 2020 December 31, 2019 | Millions of yen 4,091 2,270 | Millions of yen (452) (340) | Millions of yen (1,616) (1,025) | Millions of yen 3,692 1,669 |
2. Cash dividends
Dividends per share | |||||
First quarter-end | Second quarter-end | Third quarter-end | Fiscal year-end | Annual total | |
Fiscal year ended December 31, 2019 December 31, 2020 | Yen - - | Yen 0.00 0.00 | Yen - - | Yen 0.00 5.00 | Yen 0.00 5.00 |
Fiscal year ending December 31, 2021 (Forecast) | - | 0.00 | - | 10.00 | 10.00 |
Total cash dividends (annual) | Payout ratio (consolidated) | Ratio of dividends to equity attributable to owners of parent (consolidated) | |
Fiscal year ended December 31, 2019 December 31, 2020 | Millions of yen - 100 | % - 4.1 | % - 1.5 |
Fiscal year ending December 31, 2021 (Forecast) | 8.0 |
3. Consolidated earnings forecasts for the fiscal year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)
(Percentages indicate year-on-year changes.)
Revenue | Operating profit | Profit before tax | Profit | |||||
Fiscal year ending December 31, 2021 | Millions of yen 26,800 | % 19.3 | Millions of yen 3,800 | % 6.0 | Millions of yen 3,700 | % 5.6 | Millions of yen 2,500 | % 3.1 |
Profit attributable to owners of parent | Basic earnings per share | ||
Fiscal year ending December 31, 2021 | Millions of yen 2,500 | % 3.1 | Yen 124.69 |
* Notes
(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
(2) Changes in accounting policies and changes in accounting estimates
(i) Changes in accounting policies required by IFRS: None
(ii) Changes in accounting policies due to other reasons: None
(iii) Changes in accounting estimates:
None
(3) Number of issued shares (ordinary shares)
(i) Total number of issued shares at end of the period (including treasury shares)
As of December 31, 2020 | 20,050,500 shares |
As of December 31, 2019 | 20,050,500 shares |
(ii) Number of treasury shares at end of the period
As of December 31, 2020 | 25 shares |
As of December 31, 2019 | - shares |
(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
For the fiscal year ended December 31, 2020 | 20,050,497 shares |
For the fiscal year ended December 31, 2019 | 20,050,500 shares |
Note: The Company conducted a 300-for-1 share split of its common shares on July 28, 2020. "Total number of issued shares at end of the period," "Number of treasury shares at end of the period" and "Average number of shares outstanding during the period" have been calculated assuming that the share split was conducted at the beginning of the fiscal year ended December 31, 2019.
(Reference) Overview of Non-consolidated Financial Results
1. Non-consolidated financial results for the fiscal year ended December 31, 2020 (from January 1, 2020 to December 31, 2020)
(1) Non-consolidated operating results
(Percentages indicate year-on-year changes.)
Operating revenue | Operating profit | Ordinary profit | Profit | |||||
Fiscal year ended December 31, 2020 December 31, 2019 | Millions of yen 2,822 1,333 | % 111.7 137.1 | Millions of yen 2,044 818 | % 149.8 263.6 | Millions of yen 1,912 722 | % 165.0 - | Millions of yen 1,722 576 | % 199.0 - |
Basic earnings per share | Diluted earnings per share | |
Fiscal year ended December 31, 2020 December 31, 2019 | Yen 85.88 28.72 | Yen 72.80 - |
Note: The Company conducted a 300-for-1 share split of its common shares on July 28, 2020. "Basic earnings per share"
and "Diluted earnings per share" have been calculated assuming that the share split was conducted at the beginning of the fiscal year ended December 31, 2019. Information on diluted earnings per share for the fiscal year ended December 31, 2019, is omitted as the shares of the Company are unlisted shares and the average share price during the period cannot be calculated although there were potentially dilutive shares.
(2) Non-consolidated financial position
Total assets | Net assets | Equity ratio | Net assets per share | |
As of December 31, 2020 December 31, 2019 | Millions of yen 16,422 15,102 | Millions of yen 5,495 3,741 | % 33.0 24.4 | Yen 269.91 184.02 |
Reference: | Equity |
As of December 31, 2020: | ¥5,412 million |
As of December 31, 2019: | ¥3,690 million |
< Reason for changes in non-consolidated financial results from the fiscal year ended December 31, 2019 >
There are changes in the non-consolidated earnings results of the fiscal year ended December 31, 2020, from the fiscal year ended December 31, 2019, due to higher consulting fee income incurred for reassessing operations, etc. to provide management advice to the subsidiaries, together with an increase in dividends received from the subsidiaries, during the fiscal year ended December 31, 2020.
* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
* Proper use of earnings forecasts, and other special items
(Caution regarding forward-looking statements and others)
The forecasts and other forward-looking statements in this report are based on currently available information and certain assumptions determined as rational. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Actual performance may significantly differ from these forecasts due to various factors in the future. The impact of the novel coronavirus disease (COVID-19) on the Group's business results is expected to be immaterial. On the other hand, matters surrounding the impact of COVID-19, such as when it will be resolved, remains unclear. Accordingly, if it becomes necessary to revise the business earnings forecast in light of future business trends, we will disclose such revisions promptly.
(Method of accessing contents of financial results presentation meeting)
On Thursday, February 18, 2021, the Company plans to hold a presentation meeting for analysts. The Company plans to post a video of this presentation meeting on its website promptly after the review is held.
(The adoption of International Financial Reporting Standards (IFRS))
The Group has adopted International Financial Reporting Standards (IFRS) from the fiscal year ended December 31, 2019. The financial figures provided under the overview of non-consolidated financial results are prepared in accordance with Japanese generally accepted accounting principles (Japanese GAAP.)
(Notes regarding (Reference))
(1) Adjusted operating profit = Operating profit + Listing preparation expenses
(2) Adjusted profit before tax = Profit before tax + Listing preparation expenses
(3) Adjusted profit attributable to owners of parent = Profit attributable to owners of parent + Listing preparation expenses - Adjustment to income tax expense
(4) Adjusted EBITDA = Profit + Income tax expense - Finance income + Finance costs + Depreciation and amortization + Listing preparation expenses
(5) The listing preparation expenses include advisory and external consultant fees related to listing preparation, such as legal fees and support cost for the introduction of International Financial Reporting Standards (IFRS), expenses related to listing examinations, and one-time expenses related to listing.
(6) The adjustment to income tax expense represents the income tax expense associated with the increase in taxable income due to the adjustment of listing preparation expenses.
(7) Adjusted operating profit, adjusted profit before tax, adjusted profit attributable to owners of parent and adjusted EBITDA are not subject to audit in accordance with Article 193-2, paragraph (1) of the Financial Instruments and Exchange Act.
(8) Adjusted operating profit, adjusted profit before tax, adjusted profit attributable to owners of parent and adjusted EBITDA are not indicators prescribed by International Financial Reporting Standards (IFRS). They are financial indicators that the Company believes are useful to investors in assessing the Group's performance. These financial indicators exclude the impact of listing preparation expenses, such as legal fees and support costs for the introduction of International Financial Reporting Standards (IFRS), which are not expected to be incurred after the listing (i.e., items that are not considered to be indicative of the results of normal operating activities or that do not provide an appropriate indication of the Group's performance in comparison with its competitors).
(9) Adjusted operating profit, adjusted profit before tax, adjusted profit attributable to owners of parent and adjusted EBITDA exclude certain items that affect profit and have significant limitations as analytical tools. Therefore, they should not be considered as alternative indicators to other indicators presented in accordance with International Financial Reporting Standards (IFRS). These financial indicators may not be comparable to the same or similar financial indicators used by other companies in the same industry because the calculation methods may differ from those of other companies, and as a result, their usefulness may be reduced.
Consolidated Financial Statements
(1) |
Assets |
Consolidated statement of financial position
As of December 31, 2019 | As of December 31, 2020 | |
Current assets | ||
Cash and cash equivalents | 1,669,486 | 3,692,215 |
Trade and other receivables | 2,339,819 | 3,029,397 |
Other current assets | 137,754 | 155,520 |
Total current assets | 4,147,059 | 6,877,132 |
Non-current assets | ||
Property, plant and equipment | 609,415 | 832,160 |
Right-of-use assets | 1,160,133 | 1,706,159 |
Goodwill | 10,984,224 | 10,984,224 |
Other intangible assets | 97,391 | 80,127 |
Deferred tax assets | 230,474 | 298,256 |
Other financial assets | 359,119 | 467,345 |
Other non-current assets | 10,639 | 5,686 |
Total non-current assets | 13,451,394 | 14,373,958 |
Total assets | 17,598,453 | 21,251,090 |
Liabilities and equity | ||
Liabilities | ||
Current liabilities | ||
Trade and other payables | 2,222,449 | 3,339,384 |
Borrowings | 556,091 | 613,040 |
Income taxes payable | 387,370 | 829,209 |
Other financial liabilities | 458,889 | 581,624 |
Other current liabilities | 561,954 | 709,302 |
Total current liabilities | 4,186,754 | 6,072,559 |
Non-current liabilities | ||
Borrowings | 7,032,411 | 5,886,873 |
Provisions | 161,681 | 193,491 |
Other financial liabilities | 670,304 | 1,093,196 |
Other non-current liabilities | 3,630 | 4,622 |
Total non-current liabilities | 7,868,026 | 7,178,182 |
Total liabilities | 12,054,780 | 13,250,741 |
Equity | ||
Share capital | 1,600,000 | 1,600,000 |
Capital surplus | 1,609,578 | 1,609,578 |
Retained earnings | 2,282,807 | 4,707,624 |
Treasury shares | - | (69) |
Other components of equity | 51,288 | 83,216 |
Total equity attributable to owners of parent | 5,543,673 | 8,000,349 |
Total equity | 5,543,673 | 8,000,349 |
Total liabilities and equity | 17,598,453 | 21,251,090 |
(2)Consolidated statement of profit or loss and consolidated statement of comprehensive income (Consolidated statement of profit or loss)
Fiscal year ended | Fiscal year ended | |
December 31, 2019 | December 31, 2020 | |
Revenue | 17,213,256 | 22,461,405 |
Operating expenses | (14,986,953) | (18,902,490) |
Other income | 39,728 | 39,216 |
Other expenses | (28,313) | (12,055) |
Operating profit | 2,237,718 | 3,586,077 |
Finance income | 1,176 | 40,121 |
Finance costs | (96,477) | (121,836) |
Profit before tax | 2,142,417 | 3,504,362 |
Income tax expense | (683,699) | (1,079,545) |
Profit | 1,458,718 | 2,424,817 |
Profit attributable to | ||
Owners of parent | 1,458,718 | 2,424,817 |
Profit | 1,458,718 | 2,424,817 |
Earnings per share | ||
Basic earnings per share (Yen) | 72.75 | 120.94 |
Diluted earnings per share (Yen) | 61.32 | 102.51 |
(Consolidated statement of comprehensive income)
Fiscal year ended | Fiscal year ended | |
December 31, 2019 | December 31, 2020 | |
Profit | 1,458,718 | 2,424,817 |
Comprehensive income | 1,458,718 | 2,424,817 |
Comprehensive income attributable to | ||
Owners of parent | 1,458,718 | 2,424,817 |
Comprehensive income | 1,458,718 | 2,424,817 |
(3)Consolidated statement of changes in equityShare capitalBalance as of January 1, 2019
Profit
Total comprehensive income
Share-based remuneration transactions
Dividends of surplus
Total transactions with owners
Balance as of December 31, 2019
Profit
Total comprehensive income
Share-based remuneration transactions
Purchase of treasury shares
Total transactions with owners
Balance as of December 31, 2020
1,600,000 - - - - - 1,600,000 - - - - - 1,600,000
Other components of equity
Balance as of January 1, 2019
Profit
Total comprehensive income
Share-based remuneration transactions
Dividends of surplus
Total transactions with owners
Balance as of December 31, 2019
Profit
Total comprehensive income
Share-based remuneration transactions
Purchase of treasury shares
Total transactions with owners
Balance as of December 31, 2020
22,273 - -
29,015
- 29,015 51,288 - -
31,928
- 31,928 83,216
Capital surplus
1,609,578 - - - - - 1,609,578 - - - - - 1,609,578
Total equity attributable to owners of parent
4,055,940 4,055,940
1,458,718 1,458,718
1,458,718
29,015
-
29,015
5,543,673
2,424,817
2,424,817
31,928
(69)
31,859 8,000,349
Retained earnings
824,089 1,458,718 1,458,718
- - - 2,282,807 2,424,817 2,424,817
- - - 4,707,624
(Thousands of yen)Total equity
1,458,718
29,015
-
29,015
5,543,673
2,424,817
2,424,817
31,928
(69)
31,859 8,000,349
Treasury shares
- - - - - - - - - -
(69)
(69)
(69)
(4)Consolidated statement of cash flows
Fiscal year ended | Fiscal year ended | |
December 31, 2019 | December 31, 2020 | |
Cash flows from operating activities | ||
Profit before tax | 2,142,417 | 3,504,362 |
Depreciation and amortization | 600,585 | 734,627 |
Loss on sale and retirement of fixed assets | 5,156 | 7,587 |
Increase (decrease) in allowance for doubtful accounts | (523) | 4,050 |
Finance income | (1,176) | (40,121) |
Finance costs | 96,477 | 121,836 |
Share-based remuneration expenses | 29,015 | 29,333 |
Accrued paid absences | 56,448 | 58,103 |
Decrease (increase) in trade and other receivables | (550,421) | (470,191) |
Increase (decrease) in trade and other payables | 665,378 | 1,105,885 |
Increase (decrease) in provision for bonuses | 83,651 | 20,121 |
Loss (gain) on valuation of investment securities | (14,000) | - |
Other | (129,278) | (1,585) |
Subtotal | 2,983,730 | 5,074,007 |
Interest received | 11 | 17 |
Interest paid | (53,133) | (54,118) |
Income taxes paid | (660,534) | (928,926) |
Net cash provided by (used in) operating activities | 2,270,074 | 4,090,980 |
Cash flows from investing activities | ||
Purchase of property, plant and equipment | (196,814) | (331,264) |
Purchase of intangible assets | (81,669) | (9,580) |
Payments of leasehold and guarantee deposits | (75,331) | (109,478) |
Proceeds from sale of marketable securities | 14,000 | - |
Other | (557) | (1,543) |
Net cash provided by (used in) investing activities | (340,371) | (451,864) |
Cash flows from financing activities | ||
Repayments of long-term borrowings | (560,000) | (1,320,000) |
Proceeds from long-term borrowings | - | 260,000 |
Purchase of treasury shares | - | (69) |
Proceeds from issuance of share acquisition rights | - | 2,594 |
Repayments of lease liabilities | (464,725) | (558,912) |
Net cash provided by (used in) financing activities | (1,024,725) | (1,616,387) |
Net increase (decrease) in cash and cash equivalents | 904,979 | 2,022,729 |
Cash and cash equivalents at beginning of period | 764,507 | 1,669,486 |
Cash and cash equivalents at end of period | 1,669,486 | 3,692,215 |