Non-Audited
Consolidated Financial Results for the First Quarter of the Fiscal Year Ending Dec. 31, 2021
(January 1, 2021 - March 31, 2021)
May 7, 2021 | ||
Company name: | Funai Soken Holdings, Inc. | Stock Exchange listing: Tokyo Stock Exchange |
Stock code: | 9757 | URL:https://hd.funaisoken.co.jp |
President & CEO: | Takayuki Nakatani | |
Contact: | Takahisa Okumura, director and senior vice president, | |
Head of Management Administration Divisional Headquarters | ||
Telephone: +81-(0)6-6232-0130 |
Scheduled date of payment of dividend: | - | ||||
Scheduled date of filing quarterly report: | May 13, 2021 | ||||
Supplementary materials compiled to explain 1st-quarter financial statements? | Yes | / No | |||
Briefing to be held to explain 1st-quarter financial results? | Yes | /No |
(Figures are rounded to the nearest million yen; fractions of one million discarded rather than rounded up or down)
1. 2021 1st Quarter Consolidated Financial Results (January 1, 2021 - March 31, 2021)
(1) Consolidated Results of Operations | (Percentages represent change from the same quarter last year) | ||||||||
Net sales | Operating income | Ordinary income | Net income attributable | ||||||
to owners of the parent | |||||||||
Three months ending | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |
March 31, 2021 | 6,891 | 5.3 | 1,704 | 15.6 | 1,732 | 14.0 | 1,184 | 18.4 | |
March 31, 2020 | 6,547 | 10.5 | 1,475 | 3.4 | 1,519 | 4.7 | 999 | 5.3 |
Notes: | Comprehensive income: | 1,204 million yen (up 27.2%) in the three months ending Mar. 31, 2021 | |||||||||||
946 million yen (down 4.2%) in the three months ending Mar. 31, 2020 | |||||||||||||
Earnings per share | Earnings per share | ||||||||||||
(basic) | (diluted) | ||||||||||||
Three months ending | Yen | Yen | |||||||||||
March 31, 2021 | 23.98 | 23.71 | |||||||||||
March 31, 2020 | 20.09 | 19.87 | |||||||||||
(2) Consolidated Financial Position | |||||||||||||
Total assets | Net assets | Equity ratio | |||||||||||
Million yen | Million yen | % | |||||||||||
As of Mar. 31, 2021 | 27,397 | 23,393 | 83.0 | ||||||||||
As of Dec. 31, 2020 | 27,951 | 23,688 | 82.4 | ||||||||||
Reference: | Shareholders' equity: | 22,747 million yen as of Mar. 31, 2021 | |||||||||||
23,041 million yen as of Dec. 31, 2020 | |||||||||||||
2. Dividends | |||||||||||||
Dividend per share | |||||||||||||
1Q-end | 2Q-end | 3Q-end | Year end | Total | |||||||||
Yen | Yen | Yen | Yen | Yen | |||||||||
Year ending Dec. 31, 2020 | - | 20.00 | - | 25.00 | 45.00 | ||||||||
Year ending Dec. 31, 2021 | - | ||||||||||||
FY2021 forecast | 21.00 | - | 25.00 | 46.00 | |||||||||
Notes: | Amendments to | dividend numbers | compared to | most recently announced forecasts? | None |
3. Forecast Consolidated Financial Results for FY2021 (January 1, 2021 - December 31, 2021)
(Percentages represent year-on-year change, full-year figures represent change compared with previous year; first-half figures represent change compared with same period in previous fiscal year.)
Net sales | Operating income | Ordinary income | Net income attributable | Earnings per | ||||||
to owners of the parent | share | |||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||
First half | 13,500 | 10.3 | 2,800 | 8.4 | 2,800 | 6.0 | 2,000 | 14.6 | 40.41 | |
Full year | 28,000 | 11.9 | 5,700 | 14.4 | 5,750 | 12.9 | 4,000 | 14.3 | 80.83 |
Notes: Amendments to performance numbers compared to most recently announced forecasts? None
Remarks
(1) | Changes in consolidated subsidiaries in this quarter: | None |
Changes in scope of consolidation: | ||
No. of new companies added: | None | |
Names of new companies added: | ||
No. of companies removed: | None | |
Names of companies removed: | ||
(2) | Application of specific accounting procedures when compiling 1Q consolidated financial statements: | None |
- Changes in accounting policies; changes in estimates; re-statement of amendments
1) | Changes in accounting policies caused by revision of accounting standards: | None | |||
2) | Other changes in accounting policies: | None | |||
3) | Changes in accounting estimates: | None | |||
4) | Re-statement of amendments: | None | |||
(4) Number of issued shares (common stock) | |||||
1) | Number of shares issued at end of three-month period (including treasury stock) | Mar. 31, 2021 | 52,500,000 | Dec. 31, 2020 | 52,500,000 |
2) | Number of treasury shares at end of three-month period | Mar. 31, 2021 | 3,119,316 | Dec. 31, 2020 | 3,011,772 |
3) Average number of shares during three-month period (cumulative total) | Mar. 31, 2021 | 49,396,096 | Mar. 31, 2020 | 49,778,174 | |
Notes: | This financial summary is excluded from quarterly review by a CPA or auditing company. |
Statement Regarding the Use of Forward-Looking Statements
Forecasts in these materials regarding future performance are based on reasonable judgments made in accordance with information currently available. Actual results may differ greatly from these forecasts for a number of factors. Please refer to "Results of Operations" on page 2 of the appendix for further information concerning the conditions on which these forecasts are based and further cautions with respect to the use of forward-looking statements.
Appendix Contents
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Qualitative Information Regarding the Three Months Ending March 31, 2021……………………………………………...2
(1) Results of Operations……․…………………………………………………………………………………………………2
(2) Financial Position…………………………………………………………………………………․․․․․․․․․․․․․․․․․․․․․․․․․․....3
(3) Consolidated Forecast and Other Forward-Looking Information……………………․․․․…………………………………4 - Consolidated Financial Statements and Notes…………………………………………………………………………․․․…5
(1) Consolidated Balance Sheet…………………………………………………………………………………․․․․․․․․․․․․․․…5
(2) Consolidated Statements of Income and Comprehensive Income……………………………………………………․․․…7
(3) Notes on Consolidated Financial Statements…………………………………………………………………………․․․….9 Notes on Going Concern Assumptions………………………………………………………………………………․․….9 Notes on Significant Changes to Shareholders' Equity………………………………………………………………․….9 Segment Information…………………………………………………………………………………․․․․․․․․․․․․․․․․․․․…..9 Subsequent Events……………………………………………………………………………………․․․․․․․․․․․․․․․․․․․…10 - Other Information……………………………………………………………………………………………………․․․․․…11
(1) Orders and Sales…………………………………………………………………………………․․․․․․․․․․․․․․․․․․․․․․․․․․…11
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1. Qualitative Information Regarding the Three Months Ending March 31, 2021
(1) Results of Operations
During the quarter under review (January 1, 2021, to March 31, 2021), the Japanese economy continued experiencing difficult conditions due to the impact of COVID-19, although some sections of the economy saw recovery through the promotion of new normal workstyles such as digitalization and non-face-to-face operations and the implementation of infection prevention measures. The economic outlook, however, remains unpredictable with concerns over the further spread and lengthening of the infectious disease.
In this situation, the Funai Soken Consulting Group (the "Group") proactively offered online seminars as the continuation of our efforts in the previous fiscal year, further promoted consulting services using online conference systems, and endeavored to improve our digital transformation (DX) consulting menu to respond to the growing needs of our clients. Furthermore, the Group endeavored to continue business activities through the promotion of teleworking and other alternative workstyle options.
As a result, the Group posted 6,891 million yen in net sales (up 5.3% year on year), 1,704 million yen in operating income (up 15.6% year on year), 1,732 million yen in ordinary income (up 14.0% year on year), and 1,184 million yen in net income attributable to owners of the parent (up 18.4% year on year) for the quarter under review, achieving record results exceeding the results we had achieved in the same quarter of the previous year in the pre-COVID business environment.
I. Net sales: 6,891 million yen (up 5.3% over the same quarter of the previous year)
Net sales increased in the monthly consulting support service of the business consulting business segment. In addition, net sales in online advertisement agency services continued their steady growth. Net sales also steadily grew in physical distribution operations in the logistics business.
Consequently, net sales rose 5.3% year on year to 6,891 million yen.
II. Operating income: 1,704 million yen (up 15.6% over the same quarter of the previous year)
Cost of sales grew from 4,246 million yen in the same quarter of the previous year to 4,475 million yen with an increase in the cost of sales in online advertisement agency services. Travel expenses and venue hiring expenses, among other expenses, however, fell significantly in consulting activities. SG&A expenses also declined from 825 million yen in the same quarter of the previous year to 711 million yen.
Consequently, operating income rose 15.6% year on year to 1,704 million yen.
III. Ordinary income: 1,732 million yen (up 14.0% over the same quarter of the previous year)
Non-operating income was 31 million yen, compared with 50 million yen in the same quarter of the previous year, reflecting factors such as gains on sales of investment securities, while non-operating expenses were 4 million yen, compared with 6 million yen in the same quarter of the previous year.
Consequently, ordinary income increased 14.0% from the same quarter of the previous year to 1,732 million yen.
IV. Net income attributable to owners of the parent: 1,184 million yen (up 18.4% over the same quarter of the previous year)
With income taxes totaling 542 million yen for the quarter under review, compared with 517 million yen in the same quarter of the previous year, net income attributable to owners of the parent rose 18.4% year on year to 1,184 million yen.
Segment-Specific Performance
The performance of each business segment is outlined below.
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Consulting
In the consulting business, both net sales and income recovered significantly compared with the same quarter of the previous
year thanks to the strong orders received for online seminars, which had struggled in the previous fiscal year, and a steady increase in orders received online. By industry sector, net sales grew steadily in consulting services for the housing and real estate industries and for medical and aged care industries. In addition, net sales increased smoothly in online advertising agency services and DX consulting services. With respect to costs, travel expenses and venue hiring expenses fell significantly due to the promotion of online seminars, online workshops, and remote support services using online conference systems.
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Consequently, net sales increased 10.7% year on year to 5,273 million yen, and operating income rose 13.0% year on year to 1,546 million yen.
II. Logistics
In the logistics operations, strong performance of e-commerce related operations in our corporate clients and an increase in new orders received online resulted in a considerable increase in revenue compared to the same quarter of the previous year. On the other hand, revenue declined in logistics consulting services due to the cautious stance our corporate clients adopted toward investment activities, although orders received were in a recovery trend. Logistics trading sales also contracted due to sluggish fuel sales volume following a downturn in business and individual movements. Income declined as the ratio of the more profitable logistics consulting services to total net sales fell.
Consequently, net sales rose 11.2% year on year to 737 million yen, while operating income fell 37.8% year on year to 74 million yen.
III. Direct Recruiting
In the direct recruiting business, revenue fell year on year due to a reduction in recruitment advertisements following the reduced level of hiring by companies as a result of COVID-19's impact. New orders and net sales, however, were in a recovery trend during the quarter under review, and the segment posted an operating income on the back of the improved profitability brought about by cost reduction and more efficient advertisement operations.
Consequently, while net sales shrank 33.6% year on year to 530 million yen, an operating income of 1 million yen was posted compared with an operating loss of 15 million yen in the same quarter of the previous year.
IV. Other Businesses
In other businesses, both net sales and income significantly grew year on year in the contact center consulting business due to the concentration of training applications during the quarter under review. In the IT consulting business, however, revenue shrank due to the difficulties in receiving new orders. Net sales in the system development business were almost at the same level as the same quarter of the previous year.
Consequently, net sales rose 9.8% year on year to 343 million yen, and operating income increased 7156.3% year on year to 43 million yen.
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Financial Position
Assets
Total assets decreased by 554 million yen from the end of the previous fiscal year to 27,397 million yen as of the end of the quarter under review.
Current assets shrank by 705 million yen from the end of the previous fiscal year to 15,599 million yen. This was mainly due to reductions in cash and deposits.
Noncurrent assets grew by 151 million yen from the end of the previous fiscal year to 11,798 million yen. This was mainly due to an increase in investment securities.
Liabilities
Total liabilities fell by 259 million yen from the end of the previous fiscal year to 4,004 million yen as of the end of the quarter under review.
Current liabilities shrank by 146 million yen from the end of the previous fiscal year to 3,851 million yen. This mainly reflects increases in the current portion of long-term loans payable and an allowance for bonus and reductions in income taxes payable and deposited money included in other current liabilities.
Noncurrent liabilities declined by 113 million yen from the end of the previous fiscal year to 152 million yen. This was mainly due to a decrease in long-term loans payable.
Net Assets
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