Geechs Inc.TSE: 7060

Consolidated Financial Results for the Fiscal Year Ended March 31, 2021

Jun 15, 2021 at 8:01 AM UTC · Issued by geechs inc.

(Percentages indicate year-on-yearchanges)

Disclaimer: This document is a translation of the original version in Japanese. In the case that there is any discrepancy between the original version and this document, the original Japanese version is assumed to be correct.

Consolidated Financial Results

for the Fiscal Year Ended March 31, 2021

[Japanese GAAP]

						May 14, 2021
Company name	geechs inc.			Listing Market	TSE 1st Section
Code Number	7060				URL	https://geechs.com
Representative	President & CEO	Naruhito Sonehara
Contact	Director CFO	Daisuke Sakuma			(TEL) +81-3-6690-6928
Scheduled date	of Ordinary General Meeting of Shareholders	June 24, 2021
Scheduled date	of filing of annual securities report:		June 24, 2021
Scheduled date	of commencement of dividend payment		June 10, 2021
Preparation of	supplementary materials for financial results	：Yes
Holding of financial results briefing	： Yes	（ For	institutional investors and analysts ）

(Figures are rounded down to the nearest million yen)

1. Consolidated Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 to March 31, 2021)

(1) Consolidated Results of Operation

Attributable to

Net Sales

Operating income

Ordinary income

owners of parent

Net income

Millions of yen

％

Millions of yen

％

Millions of yen

％

Millions of yen

％

Fiscal Year

Ended March 31,

3,427

△3.3

738

7.9

713

5.7

457

17.2

2021

Fiscal year

Ended March 31,

3,544

16.2

684

23.7

675

26.9

390

△5.1

2020

(Note) Comprehensive

Fiscal Year Ended March 31, 2021

458

Millions of yen

( 17.1

％)

income

Fiscal year Ended March 31, 2020

391

Millions of yen

( △4.7

％)

Earnings per

Diluted

Shareholders'

Total assets

Net Sales

Earnings per

equity

Ordinary income

Operating income

Net income margin

margin

Yen

％

Fiscal Year

Ended March 31,

43.83

43.06

12.7

11.0

21.5

2021

Fiscal year

Ended March 31,

37.78

36.74

12.8

14.4

19.3

2020

(Reference) Equity in net income of

Fiscal Year Ended March 31, 2021

－ Millions of yen

affiliated companies

Fiscal year Ended March 31, 2020

－ Millions of yen

(Note) We conducted a 2-for-1 stock split of common stock on September 1, 2019. Accordingly, earnings per share and fully diluted earnings per share are calculated as if this stock split had taken place at the beginning of the previous fiscal year.

(2) Consolidated Financial Position

		Total assets		Net assets	Equity Ratio	Net assets per share

		Millions of yen	Millions of yen		％	Yen
Fiscal Year
Ended March 31,	6,486	3,830		59.1	365.74
2021
Fiscal year
Ended March 31,	4,700	3,356		71.4	321.99
2020
(Reference)	Shareholders' equity	Fiscal Year Ended March 31, 2021	3,830	Millions of yen
			Fiscal year Ended March 31, 2020	3,356	Millions of yen

(3) Consolidated Cash Flows

				Cash and cash
	Cash flow from	Cash flow from	Cash flow from	equivalents
	operating activities	investing activities	financing activities	Balance at end of
				year
	Millions of yen	Millions of yen	Millions of yen	Millions of yen
Fiscal Year
Ended March 31,	661	△48	△22	3,149
2021
Fiscal year
Ended March 31,	39	△77	△20	2,559
2020

2. Dividends

		Annual dividends			Dividend	Net assets
			Total	Payout	Dividend

	1st Quarter-	2nd Quarter-	3rd Quarter-			dividends	Ratio	Ratio
	Year-End	Total	(Total)	(Consolidat	(Consolidat
	End	End	End				ed)	ed)

	Yen	Yen	Yen	Yen	Yen	Millions of	％	％
	yen

Fiscal year
Ended March	－	0.00	－	0.00	0.00	0	－	－
31, 2020
Fiscal Year
Ended March	－	0.00	－	10.00	10.00	104	22.8	2.7
31, 2021
Fiscal Year Ending
March 31, 2022	－	0.00	－	10.00	10.00		17.5
(Forecast)

(Note) Breakdown of the year-end dividend for the fiscal year Ended March 31, 2021: Ordinary dividend of ¥5.00; Commemorative dividend of ¥5.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 to March 31, 2022)

(Percentages indicate year-on-year changes)

							Net income	Net income per
	Net Sales	Operating income	Ordinary income	attributable to
	share
							owners of parent

	Millions		Millions		Millions		Millions
	of yen	％	of yen	％	of yen	％	of yen	％	Yen
Full year	5,000	45.9	1,000	35.4	1,000	40.1	600	31.1	57.29

* Notes

Changes in Significant Subsidiaries during the Period (Changes in Specified ： None Subsidiaries Resulting in Changes in the Scope of Consolidation)

Newly added －

Exclusion

－

Changes in Accounting Policies, Changes in Accounting Estimates, and Restatement of Corrections ① Changes in accounting policies due to revisions to accounting standards, etc. ：None

②	Changes in accounting policies due to other reasons	：None
③	Changes in accounting estimates	：Yes
④	Restatement of prior period financial statements after error corrections	：None

(Percentages indicate year-on-yearchanges)

(3) Number of shares outstanding (common stock)

① Number of shares outstanding at the end of the period (including treasury stock)

② Number of treasury stock at the end of the period

③ Average number of shares during the period

Fiscal Year		Fiscal Year
Ended March	10,513,440shares	Ended March	10,462,960shares
31, 2021		31, 2020

Fiscal Year		Fiscal Year
Ended March	40,104shares	Ended March	40,000shares
31, 2021		31, 2020

Fiscal Year		Fiscal Year
Ended March	10,443,408shares	Ended March	10,339,413shares
31, 2021		31, 2020

We conducted a 2-for-1 stock split of common stock on September 1, 2019. Accordingly, the number of shares outstanding (including treasury stock) at the end of the period, the number of treasury stock at the end of the period, and the average number of shares during the period have been calculated assuming that such stock split was implemented at the beginning of the previous fiscal year.

(Reference) Summary of Non-Consolidated Results

1. Non-Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 to March 31, 2021)

(1) Non-Consolidated Results of Operation

	Net Sales		Operating income	Ordinary income	Net income

	Millions of yen		％	Millions of yen		％	Millions of yen	％	Millions of yen	％
Fiscal Year
Ended March 31,	1,710		11.4	460		35.8	468	33.0	325	56.7
2021
Fiscal year
Ended March 31,	1,536		10.9	339		70.9	352	72.5	207	△30.1
2020

	Earnings per share	Diluted
	Earnings per share


			Yen			Yen
Fiscal Year
Ended March 31,			31.18			30.63
2021
Fiscal year
Ended March 31,			20.10			19.55
2020

We conducted a 2-for-1 stock split of common stock on September 1, 2019. Accordingly, earnings per share and fully diluted earnings per share have been calculated as if this stock split had taken place at the beginning of the previous fiscal year.

(2) Non-Consolidated Financial Position

		Total assets		Net assets	Equity Ratio	Net assets per share

		Millions of yen	Millions of yen		％	Yen
Fiscal Year
Ended March 31,	4,489	3,303		73.6	315.44
2021
Fiscal year
Ended March 31,	3,996	2,961		74.1	284.17
2020
(Reference)	Shareholders' equity	Fiscal Year Ended March 31, 2021	3,303	Millions of yen
			Fiscal year Ended March 31, 2020	2,961	Millions of yen

※ This financial report is exempt from audit by certified public accountants or auditing firms.

※ Cautionary statement with respect to financial forecasts

The financial forecasts in this report are based on information currently available to us and on certain assumptions that we believe reasonable. Actual results may differ materially from these forecasts due to a variety of factors.

Contents of the attached materials

1. Overview of Operating Results...............................................................	2
(1)	Overview of Consolidated Results of Operation............................................	2
(2)	Overview of Financial Position for the Period ...........................................	3
(3)	Overview of Cash Flows for the Fiscal Year ..............................................	3
(4)	Future Outlook ..........................................................................	5
(5)	Significant Events Related to Going Concern Assumptions: ................................	6
2. Basic Approach to Selection of Accounting Standards ........................................	6
3. Consolidated Financial Statements and Major Notes ..........................................	7
(1)	Consolidated Balance Sheets .............................................................	7
(2)	Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ...	9
(3)	Consolidated Statements of Changes in Net Assets ........................................	11
(4)	Consolidated Statements of Cash Flows ...................................................	12
(5)	Notes to Consolidated Financial Statements ..............................................	14
(Note on Going Concern Assumption) ........................................................	14
(Basis of Preparation of Consolidated Financial Statements) ...............................	14
(Changes in accounting estimates) .........................................................	14
(Segment Information, etc.) ...............................................................	14
(Per Share Information) ...................................................................	17
(Significant Subsequent Events) ...........................................................	17

1. Overview of Results of Operation

(1) Overview of Results of Operation for the Period

Under the Group's Grand Vision of "becoming the biggest impression in the 21st century," we will leverage our IT Freelancers database and our human resources infrastructure, including the development of IT engineers, who are active globally, to proactively grasp the lifestyles of people and corporate behavior that are rapidly changing due to the spread of the Internet. We will leverage our ability to respond to change to constantly grow, through the creation and evolution of services, with the aim of continually increasing corporate value. The Group consists of four business segments, including three subsidiaries. The business segments are classified into: "IT Freelance Matching Business," "IT Human Resource Development Business," "Game Business," and "x-Tech Business."

From the first quarter consolidated fiscal period, the Company has reviewed and combined the previous reporting segments of "Video Business" and "Internet Business" into "x-Tech Business". Comparative analysis with the previous fiscal year is based on the new classification method.

During the consolidated fiscal year under review, the Japanese economy continued to be in an extremely severe situation due to the prolonged significant deterioration caused by the spread of new coronaviral infections. The future outlook remains uncertain, as evidenced by the announcement of a State of Emergency in January of this year.

At the same time, amid the ongoing progress in adapting to new lifestyles and promoting workstyle reforms in response to the Corona Crisis, we recognize that the role that the Group should play will become even more important in addressing the challenges faced by companies promoting digital shifts and individuals seeking new lifestyles and workstyles.

Under these circumstances, the Group recorded net sales of ¥3,427 million (down 3.3% year on year), operating income of ¥738 million (up 7.9%), ordinary income of ¥713 million (up 5.7%), and net income attributable to owners of parent of ¥457 million (up 17.2%).

Results by business segment were as follows:

In the IT Freelance Matching Business, the business environment is recuperating, as corporate demand for hiring recovered, which had been temporarily restrained due to the effects of the new coronavirus infectious disease. The Group worked to strengthen its support structure by promoting DX to digitalize existing operations and provide optimal services, further expanding "Frinove", a welfare program for IT Freelancers, and actively conducting surveys of supply and demand trends and IT Freelancer's attitudes regarding the issue of the Coronavirus.

As a result, the segment recorded, net sales of ¥1,444 million (up 8.6% year on year) and segment income of ¥823 million (up 14.4%).

In the IT Human Resource Development Business, IT Study Abroad is a key feature that enables students to learn programming and English on an on-site basis. However, the impact of the new coronavirus infectious disease has made it difficult to travel from Japan since April 2020, and this has had a major impact on our business. Under these circumstances, the Group worked to minimize its impact by focusing on the provision of online classes launched as a new service and offshore development.

As a result, the segment recorded sales of ¥103 million (down 53.6% year on year) and a segment loss of ¥15 million (segment loss of ¥4 million in the previous fiscal year).

Sales were firm, buoyed by strong trend of staying at home due to the effects of the new coronaviral

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