Note: This document has been translated from 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
First Three Months of the Fiscal Year Ending March 31, 2022
(Japanese Accounting Standards)
August 4, 2021 | ||
Company name: | SIGMAXYZ Inc. | Stock listing: Tokyo Stock Exchange |
Stock code: | 6088 | URL: https://www.sigmaxyz.com/ |
Representative: | Ryuichi Tomimura, Representative Director and President | |
Inquiries: | Shinya Tabata, CFO | Telephone: +81-3-6430-3400 |
Scheduled date of quarterly securities report filing: August 4, 2021
Scheduled date of dividend payment: -
Preparation of supplementary materials on quarterly financial results: Yes
Schedule of quarterly financial results presentation meeting: None
(Amounts of less than ¥1 million are rounded down)
1. Consolidated Financial Results for the Three Months Ended June 30, 2021 (from April 1, 2021 to June 30, 2021)
(1) Consolidated Operating Results (Cumulative) | (% figures indicate year-on-year changes) | ||||||||||
Revenue | Operating Profit | Ordinary Profit | Profit Attributable to | ||||||||
Owners of Parent | |||||||||||
Three months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||
June 30, 2021 | 3,415 | 1.5 | 379 | 148.1 | 364 | 123.2 | 153 | 75.9 | |||
June 30, 2020 | 3,366 | (11.5) | 152 | (50.6) | 163 | (45.1) | 87 | (46.0) | |||
Note: Comprehensive Income | Three | months ended June 30, 2021: ¥153 million [75.9%] | |||||||||
Three months ended June 30, 2020: ¥87 million [(46.0)%] | |||||||||||
Profit per Share | Profit per Share | ||||||||||
(Diluted) | |||||||||||
Three months ended | Yen | Yen | |||||||||
June 30, 2021 | 7.55 | - | |||||||||
June 30, 2020 | 4.53 | 4.53 |
Note: Profit per share (diluted) for the three months ended June 30, 2021 is not stated because there are no dilutive shares.
(2) Consolidated Financial Position
Total Assets | Net Assets | Equity Ratio | Net Assets per Share | |
As of | Millions of yen | Millions of yen | % | Yen |
June 30, 2021 | 12,108 | 8,921 | 73.7 | 420.55 |
March 31, 2021 | 10,283 | 5,462 | 53.1 | 287.61 |
Reference: Equity | As of June 30, 2021: | ¥8,921 million | ||||
As of March 31, 2021: ¥5,462 million | ||||||
2. Dividends | ||||||
Annual Dividend | ||||||
First Quarter-End | Second Quarter-End | Third Quarter-End | Fiscal Year-End | Total | ||
Fiscal year ended | Yen | Yen | Yen | Yen | Yen | |
March 31, 2021 | － | 0.00 | － | 22.00 | 22.00 | |
Fiscal year ending | － | |||||
March 31, 2022 | ||||||
Fiscal year ending | ||||||
March 31, 2022 | 0.00 | － | 24.00 | 24.00 | ||
(Forecast) | ||||||
Note: Revisions to the most recently announced dividend forecast: None
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3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2022 (from April 1, 2021 to March 31, 2022)
(% figures indicate year-on-year changes)
Revenue | Operating Profit | Ordinary Profit | Profit Attributable to | Profit per Share | ||||||||
Owners of Parent | ||||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | ||||
Fiscal year ending | 16,000 | 14.1 | 2,500 | 43.0 | 2,500 | 39.1 | 1,500 | 24.0 | 71.50 | |||
March 31, 2022 | ||||||||||||
Revisions to the most | recently announced earnings forecasts: None |
- Notes
- Changes in significant subsidiaries during the period (changes in specified subsidiaries affecting the scope of consolidation): None
- Adoption of special accounting methods for preparation of quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates, and retrospective restatements
1) | Changes in accounting policies associated with revisions to accounting standards: Yes | |
2) | Changes in accounting policies other than those in item 1) above: | None |
3) | Changes in accounting estimates: | None |
4) | Retrospective restatements: | None |
Note: For details, please refer to "2. Quarterly Consolidated Financial Statements and Important Notes (3) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)" on page 7 of the attached materials.
(4) Number of shares issued (common stock)
1) | The number of shares issued as of the end of the period (including treasury shares) | ||
As of June 30, 2021 | 23,154,300 shares | ||
As of March 31, 2021 | 21,104,300 shares | ||
2) | The number of treasury shares as of the end of the period | ||
As of June 30, 2021 | 1,939,897 shares | ||
As of March 31, 2021 | 2,110,564 shares | ||
3) | Average number of shares outstanding during the period (cumulative from the start of the fiscal year) | ||
Three months ended June 30, 2021 | 20,270,190 shares | ||
Three months ended June 30, 2020 | 19,197,967 shares |
Note: The number of treasury shares excluded from the calculation of the number of treasury shares as of the end of the period and average number of shares outstanding during the period (cumulative from the start of the fiscal year) include the shares of the Company held by Custody Bank of Japan, Ltd. (Trust Account E) as trust assets for the Employee Stock Ownership Plan (J-ESOP) and those held by Custody Bank of Japan, Ltd. (Trust Account) as trust assets for a performance-linked stock compensation program.
- These quarterly financial statements are outside the scope of quarterly review procedures by certified public accountants or audit corporations.
-
Explanation regarding proper use of financial forecasts, and other special matters
The earnings forecasts and other forward-looking statements presented in these materials reflect information currently available to the Company and assumptions that are deemed to be reasonable, but the Company does not guarantee the achievement of these targets. Actual results may differ significantly as a consequence of various factors.
For more information on the Company's earnings forecasts and underlying assumptions, please refer to "1. Qualitative Information on Quarterly Financial Results (3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements" on page 2 of the attached materials.
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SIGMAXYZ Inc. (6088) Financial Results for the Three Months Ended June 30, 2021
Contents of the attached materials
1. Qualitative Information on Quarterly Financial Results | 2 | |
(1) | Explanation of Operating Results | 2 |
(2) | Explanation of Financial Position | 2 |
(3) | Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements | 2 |
2. Quarterly Consolidated Financial Statements and Important Notes | 3 | |
(1) | Quarterly Consolidated Balance Sheet | 3 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income | 4 |
Quarterly Consolidated Statement of Income | 4 | |
(Three months ended June 30, 2020 and 2021) | ||
Quarterly Consolidated Statement of Comprehensive Income | 5 | |
(Three months ended June 30, 2020 and 2021) | ||
(3) | Notes to Quarterly Consolidated Financial Statements | 6 |
(Notes Regarding Assumption of a Going Concern) | 6 | |
(Notes on Significant Changes in the Amount of Shareholders' Equity) | 6 | |
(Changes in Accounting Policies) | 7 | |
(Segment Information, etc.) | 7 |
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SIGMAXYZ Inc. (6088) Financial Results for the Three Months Ended June 30, 2021
1. Qualitative Information on Quarterly Financial Results
- Explanation of Operating Results
Recently, the Japanese economy has continued to show signs of picking up from the fallout of the novel coronavirus (COVID-19) pandemic although some parts of it are increasingly remain weak. We expect the economy to recover down the road due to the promotion of vaccinations, various policies and improvement of overseas economies. However, we need to closely watch how the COVID-19 pandemic will affect the economies at home and abroad, as well as how fluctuations in the financial and capital markets affect our business operations. In such an environment, the Group is engaged in value creation in a wide range of industries and companies such as drafting business strategy, M&A, business reform, organizational reform, utilization of digital technology and cloud solutions, project management, development of new business, promotion of collaboration between companies, business investment and creation of joint ventures.
During the three months ended June 30, 2021, the Group announced that it would make the transition to a holding company system on October 1, 2021. The purpose of the transition to the holding company system is to further promote professionalism of the new subsidiary that handles consulting business and SIGMAXYZ Investment Inc. that handles the investment business, and increase the value provided as a Group as a whole through growth of these subsidiaries. Furthermore, a capital and business alliance with ITOCHU Corporation was announced. Through the utilization of ITOCHU, its Group companies and its client network, the Company will accelerate its growth strategy.
The consolidated financial results and key business indicators for the three months ended June 30, 2021 are as follows.
Revenue was ¥3,415 million (up 1.5% year on year). Following on from the previous fiscal year, consulting services for the aviation industry decreased and in call center projects for the retail industry, there was a scale-down of procurement of hardware and software products on behalf of clients which has contributed only marginally to profit. Meanwhile, some projects to support client companies contributed to the Group's business performance. Such projects include services to assist ERP cloud migration services, formulation of digital transformation strategies for companies, revitalization of organizations and personnel, and development of new businesses and services. Furthermore, reducing outsourcing costs by strengthening the internal delivery system for ERP cloud migration services projects resulted in an improvement in profit margin.
Selling, general and administrative expenses were ¥1,041 million (down 9.3% year on year).
Due to an increase in revenue and a decrease in cost of revenue, gross profit increased by ¥120 million to ¥1,420 million (up 9.2% year on year), operating profit increased by ¥226 million to ¥379 million (up 148.1% year on year), and ordinary profit increased by ¥201 million to ¥364 million (up 123.2% year on year).
Profit attributable to owners of parent came to ¥153 million (up 75.9% year on year).
On the hiring front, the Company added 50 new graduates in the three months ended June 30, 2021. The training for new graduates is going well in a hybrid format combining a remote work environment and face-to-face training. They will start working on their job from the coming October. As of June 30, 2021, the total number of employees was 584 (up 20 year on year) including 511 consultants.
Project satisfaction remained high at 94 points, and the number of projects was 348, while the number of clients was 117.
-
Explanation of Financial Position (Assets)
Total assets as of June 30, 2021 stood at ¥12,108 million (up ¥1,824 million from the end of the previous fiscal year).
This mainly reflected an increase in cash and deposits (up ¥2,298 million from the end of the previous fiscal year) and a decrease in accounts receivable - trade (down ¥316 million from the end of the previous fiscal year).
(Liabilities)
Liabilities as of June 30, 2021 totaled ¥3,187 million (down ¥1,634 million from the end of the previous fiscal year). This mainly reflected a decrease in short-term borrowings (down ¥1,400 million from the end of the previous fiscal year) and a decrease in income taxes payable (down ¥236 million from the end of the previous fiscal year).
(Net assets)
Total assets as of June 30, 2021 stood at ¥8,921 million (up ¥3,458 million from the end of the previous fiscal year). This mainly reflected increases in share capital and capital surplus (each up ¥1,778 million from the end of the previous fiscal year) due to the impact of a third-party allocation of shares.
(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements
The consolidated earnings forecasts for the fiscal year ending March 31, 2022 have not changed from the forecasts included in "Consolidated Financial Results for the Fiscal Year Ended March 31, 2021," released on April 22, 2021.
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SIGMAXYZ Inc. (6088) Financial Results for the Three Months Ended June 30, 2021
2. Quarterly Consolidated Financial Statements and Important Notes
(1) Quarterly Consolidated Balance Sheet
(Thousands of yen) | |
Fiscal year ended March 31, 2021 | Three months ended June 30, 2021 |
(As of March 31, 2021) | (As of June 30, 2021) |
Assets
Current assets
Cash and deposits
Accounts receivable - trade
Notes and accounts receivable - trade, and contract assets
Operational investment securities
Other
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Software
Software in progress
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
5,275,769 | 7,574,697 |
1,787,267 | - |
1,470,360 | |
- | |
714,796 | 850,079 |
238,149 | 251,780 |
8,015,983 | 10,146,917 |
179,058 | 167,955 |
327,340 | 307,154 |
167,221 | 192,156 |
6,177 | 8,104 |
500,739 | 507,414 |
986,176 | 752,962 |
220,136 | 125,203 |
381,795 | 408,273 |
Total investments and other assets | 1,588,109 | 1,286,439 |
Total non-current assets | 2,267,907 | 1,961,809 |
Total assets | 10,283,891 | 12,108,726 |
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Accounts payable - other
Income taxes payable
Provision for share-based remuneration Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Provision for share-based remuneration Provision for share-based remuneration for directors (and other officers)
Asset retirement obligations
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Total net assets
Total liabilities and net assets
221,061 | 205,700 |
1,600,000 | 200,000 |
598,999 | 512,669 |
384,674 | 148,508 |
203,025 | 269,729 |
231,597 | 254,024 |
3,239,357 | 1,590,632 |
300,000 | 300,000 |
10,704 | 9,011 |
259,163 | 66,426 |
925,517 | 1,134,524 |
86,444 | 86,444 |
1,581,828 | 1,596,406 |
4,821,186 | 3,187,039 |
2,848,506 | 4,626,881 |
1,150,829 | 2,929,204 |
3,938,630 | 3,637,912 |
(2,475,262) | (2,272,311) |
5,462,704 | 8,921,687 |
5,462,704 | 8,921,687 |
10,283,891 | 12,108,726 |
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