FY2022
1st Quarter Earnings Presentation
(Apr. 2022 - June. 2022)
July 29th, 2022
SPARX Group Co., Ltd. https://www.sparxgroup.com/
SPARX Statement
Purpose
To make the world wealthier,
healthier, and happier
Vision
To be the most trusted and respected
investment company in the world
Mission
Bring ever-better investments to the world
2
FY2022 Q1 Performance
3
About This Earnings Presentation
This earnings presentation provides management accounting details not included in the consolidated statement. Note that, as shown in the following diagram, SPARX categorizes (1) management fees, (2) performance fees, and (3) other operating revenue, while (1) ordinary expenses, (2) commissions paid, and (3) bonuses are included in operating and general expenses.
SPARX Group has set base earnings as its overriding administrative index. Base earnings demonstrate whether a business has the earning capacity needed for a sustainable, stable foundation. We use the following formula to calculate base earnings:
Base earnings = (Management fees ̶ Commissions paid) - Ordinary expenses
= Management fees (after deducting commissions) - Ordinary expenses
In financial accounting, operating profit includes one-time or additional performance fees, but these fees fluctuate considerably, according to trends in the stock market or business progress in real asset investments. Therefore,
base earnings indicate genuine earning capacity.
Financial accounting | Management accounting | |||||
Other operating | ||||||
Operating | revenue | Additional profit | ||||
profit | Performance fees | Operating | ||||
Bonuses | ||||||
profit | ||||||
Base | ||||||
Operating | earnings | |||||
revenue | ||||||
Operating and | Management | Ordinary | ||||
general | ||||||
expenses | fees | expenses |
Commissions | 4 |
paid |
Consolidated Earnings Summary (1) Performance
・Operating revenue increased by 1.5% due to the contribution of management fee related to Mirai Creation Fund III although performance fees has decreased.
・Operating profit has increased by 2.2% due to reasons stated above, despite an increase in ordinary expense.
・Net profit has slightly increased by 0.6% due to the absence of a gain from the partial sales of investment securities which recorded in the same period of the previous fiscal year.
・Base Earning has increased by 11.7% due to recording management fees earned related to Mirai Creation Fund III.
（Unit:Millions of yen） | FY2021 | FY2022 | YoY change | |
Q1 | Q1 | |||
Operating revenue | 3,311 | 3,362 | +1.5% | |
Operating profit | 1,469 | 1,502 | +2.2% | |
Net profit | 1,063 | 1,070 | +0.6% | |
Base earnings | 1,443 | 1,613 | +11.8% | |
(Note) See pages 4, 6, 36, and 41 for more on base earnings. | 5 |
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