Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.
Summary of Consolidated Financial Results for the Nine Months Ended September 30, 2021 (Based on Japanese GAAP)
Company name: | BASE, Inc. | November 4, 2021 | ||
Stock exchange listing: | Tokyo | |||
Stock code: | 4477 | URL https://binc.jp/en | ||
Representative: | Representative Director and CEO | Yuta Tsuruoka | ||
Inquiries: | Director, Senior Executive Officer and CFO | Ken Harada | TEL 03(6441)2075 |
Scheduled date to file Quarterly Securities Report: | November 4, 2021 | ||||||||
Scheduled date to commence dividend payments: | - | ||||||||
Preparation of supplementary material on quarterly financial results: | Yes | ||||||||
Holding of quarterly financial results meeting: | Yes | (for institutional investors and analysts) | |||||||
(Amounts of less than one million yen are rounded down) | |||||||||
1. Consolidated financial results for the Nine months ended September 30, 2021 (from January 1, 2021 to September 30, 2021) | |||||||||
(1) Consolidated operating results (cumulative) | (% indicates changes from the previous corresponding period) | ||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||
owners of parent | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||
Nine months ended September 30, 2021 | 7,176 | 19.7 | (490) | － | (494) | － | (467) | － | |
Nine months ended September 30, 2020 | 5,996 | 119.6 | 1,146 | － | 1,148 | － | 949 | － |
(Note)Comprehensive Income (millions of yen) | |||
Nine months ended September 30, 2021: (464) (－%) | Nine months ended September 30, 2020: 949 (－%) | ||
Earnings per share | Diluted earnings per share | ||
Yen | Yen | ||
Nine months ended September 30, 2021 | (4.24) | － | |
Nine months ended September 30, 2020 | 9.29 | 8.56 |
(Notes) 1. Despite the existence of potential shares in the fiscal year ended September 30, 2021, diluted earnings per share are not indicated because net loss per share was recorded.
2. The Company conducted a stock split as of April 1, 2021, whereby each ordinary share was split into 5 shares. The afore-mentioned calculation of earnings per share and diluted earnings per share are based on the assumption that the stock split was conducted at the beginning of the fiscal year ended December 31, 2020.
- Consolidated financial position
Total assets | Net assets | Equity ratio | |
Millions of yen | Millions of yen | % | |
As of September 30, 2021 | 29,034 | 15,822 | 54.5 |
As of December 31, 2020 | 28,505 | 16,217 | 56.9 |
(Reference)Equity (millions of yen) As of September 30, 2021: 15,822. As of December 31, 2020: 16,217.
2. Cash dividends
Annual dividends per share | |||||||||
1st quarter-end | 2nd quarter-end | 3rd quarter-end | Fiscal year-end | Total | |||||
Yen | Yen | Yen | Yen | Yen | |||||
Year ended December 31, 2020 | － | 0.00 | － | 0.00 | 0.00 | ||||
Year ending December 31, 2021 | － | 0.00 | － | ||||||
Year ending December 31, 2021 | 0.00 | 0.00 | |||||||
(Forecast) | |||||||||
(Note) Revisions to most recent dividend forecast: None
3. Forecast of consolidated financial results for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)
(% indicates changes from the previous corresponding period)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Earnings per share | |||||
owners of parent | |||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |
Full year | 9,750 | 17.6 | (1,433) | － | (1,433) | － | (1,437) | － | (13.10) |
~10,536 | ~27.1 | ~(929) | ~(929) | ~(933) | ~(8.51) |
(Notes) 1. Revisions to most recent consolidated results forecast: None
2. The Company conducted a stock split as of April 1, 2021, whereby each ordinary share was split into 5 shares. The afore-mentioned calculation of earnings per share is based on the assumption that the stock split was conducted at the beginning of the fiscal year ending
December 31, 2021. | |||
4. Notes | |||
(1) Changes in significant subsidiaries during the Nine months ended September 30, 2021 | No | ||
(changes in specified subsidiaries resulting in the change in scope of consolidation): | |||
New: - ( | ), Exclusion: - ( | ) | |
(2) Application of special accounting methods for preparing quarterly consolidated financial statements: | No | ||
(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements | |||
Changes in accounting policies due to revisions to accounting standards and other regulations: | No | ||
Changes in accounting policies due to other reasons: | No | ||
Changes in accounting estimates: | No | ||
Restatement of prior period financial statements: | No |
(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2021 | 110,862,749 shares | As of December 31, 2020 | 109,697,000 shares | |
Number of treasury shares at the end of the period | ||||
As of September 30, 2021 | － shares | As of December 31, 2020 | － shares | |
Average number of shares during the period (cumulative from the beginning of the fiscal year) | ||||
(Note) | Nine months ended September 30, 2021 | 110,359,178 shares | Nine months ended September 30, 2020 | 102,137,664 shares |
The Company conducted a stock split as of April 1, 2021, whereby each ordinary share was split into 5 shares. The afore-mentioned | ||||
calculation of total number of issued shares at the end of the period (including treasury shares) and average number of shares during the | ||||
period (cumulative from the beginning of the fiscal year) are based on the assumption that the stock split was conducted at the beginning | ||||
of the fiscal year ended December 31, 2020. |
*The summary of quarterly financial results is not subject to a quarterly review by a certified public accountant or an auditing firm. *Explanation on the appropriate use of business forecasts and other special matters
(Notice regarding forward-looking statements, etc.)
Forward-looking statements or projections contained in this document are based on information that the Company has at the present time and certain premises that the Company deems reasonable. Such forward-looking statements are not intended to represent a commitment on the part of the Company to achieve them. Also, actual results may differ significantly due to various factors. Please see the "1. Qualitative information on results for the nine months ended September 30, 2021 (3) Overview of forecast of operating results including consolidated financial results" on page 3 of the attached document for the conditions that form the basis of earnings forecasts and cautions for using earnings forecasts.
(Access to supplementary information on quarterly financial results and contents of quarterly financial results briefing)
The Company plans to hold a briefing for institutional investors and analysts on Thursday, November 4, 2021. We plan to post on the Company website the materials for results briefing, which will be used on that day.
(Changing units of amount)
The amounts of accounts and other items for our quarterly consolidated financial statements have been previously stated in units of thousands of yen. However, they have been changed to be stated in units of millions of yen from the first quarter of consolidated fiscal year ending December 31, 2021 and the three months ended March 31, 2021. For ease of comparison, figures for the previous consolidated fiscal year and the nine months ended September 30, 2020 are also indicated in units of millions of yen.
Contents of Appendix | ||
1. Qualitative information on results for the nine months ended September 30, 2021....................................................................................... | 2 | |
(1) | Overview of operating results..................................................................................................................................................................... | 2 |
(2) | Overview of financial position.................................................................................................................................................................... | 3 |
(3) | Overview of forecast of operating results including consolidated financial results .................................................................................. | 3 |
2. Quarterly consolidated financial statements and main noted items............................................................................................................. | 4 | |
(1) | Quarterly consolidated balance sheets....................................................................................................................................................... | 4 |
(2) | Quarterly consolidated statements of income and comprehensive income............................................................................................... | 5 |
(3) | Notes on quarterly consolidated financial statements................................................................................................................................ | 7 |
(Notes regarding going concern assumptions)................................................................................................................................................. | 7 | |
(Notes on significant changes in the amount of shareholders' equity)............................................................................................................ | 7 | |
(Segment information etc.).............................................................................................................................................................................. | 7 |
－ 1 －
1. Qualitative information on results for the nine months ended September 30, 2021
- Overview of operating results
Advocating "Payment to the People, Power to the People." as its mission, the Group of the Company (hereinafter, "the Group") actively operates the BASE business providing e-commerce platforms BASE, and the PAY business providing online payment services PAY.JP and through these services, the Group focuses on empowering MSMB (Micro, Small and Medium Businesses) and supporting start-up businesses.
In the cumulative 3rd quarter of the fiscal year under review, the future remains uncertain, with several prefectures continuing to declare the State of Emergency and continuing to implement the semi-emergencyCOVID-19 measures.
In this business environment, in order to achieve sustainable growth over the medium to long term, the BASE business continues to strive for aggressive marketing targeting MSMB, and to expand functions to improve the convenience of shop operations. In the PAY business, we are striving to expand the number of merchants by strengthening our products with the aim of creating online payment functions that are simpler and easier to implement and operate, targeting startups and venture companies.
As a result of the above, our Group's consolidated net sales for the cumulative 3rd quarter of the fiscal year under review were ¥7,176 million (19.7% increase year on year), operating loss was ¥490 million (operating profit of ¥1,146 million in the same period of the previous year), ordinary loss was ¥494 million (ordinary profit of ¥1,148 million in the same period of the previous year), and loss attributable to owners of parent was ¥467 million (profit attributable to owners of parent of ¥949 million in the same period of the previous year).
The results of the segments are as follows.
A) BASE Business
In the BASE business for the cumulative 3rd quarter of the fiscal year under review, we continued to implement TVCM, web marketing, and other activities, with the aim of improving service awareness and promoting the opening of new shops. As a result, in September 2021, the cumulative number of shops opened exceeded 1.6 million, and the number of active shops per month increased significantly.
In terms of product development, we have provided the "Google Product Linkage/Advertising App" that allows users to easily post Google advertisements from the BASE management screen, enabling shop owners to more smoothly attract customers to their online shops and conduct sales promotions, and we have also announced a partnership with "TikTok" for the purpose of product linkage. Also, by providing all shops with the "customer management function" which enables segmented distribution of mail magazines according to the attributes of customers as a standard function, shop owners are now able to build further relationships with customers in addition to sales promotion activities. Furthermore, the "Restock Auto Notification App" automatically sends restock notification e-mails to prospective buyers when replenishing the stock of sold-out products, reducing the burden on shops to respond to inquiries about the restocking of products.
In the cumulative 3rd quarter of the previous fiscal year, the gross merchandise volume grew significantly due to an increase in demand for the opening of online shops and the shift of consumers to e-commerce in response to the spread of COVID-19. In the cumulative 3rd quarter of the fiscal year under review, sales of hygiene products such as masks and disinfectants decreased, which decreased the impact of COVID-19, but gross merchandise volume grew owing to an increase in the number of active shops per month.
As a result, the gross merchandise volume during the cumulative 3rd quarter of the fiscal year under review, was ¥82,048 million (order amount), ¥76,741 million (payment amount), and was 18.9% increase (order amount) and 21.4% increase (payment amount) from the same period of the previous year.
While net sales and gross profit on sales for the cumulative 3rd quarter of the fiscal year under review increased as a result of growth in gross merchandise volume, the take rate decreased mainly due to a decrease in purchasers' commission. The decrease in purchasers' commission was due to a change in the ratio of payment methods and an increase in the unit price of payment. In addition to a decrease in the take rate, an increase in the cost of sales ratio resulted in a decrease in the gross profit margin. The increase in the cost of sales ratio was due to a change in the ratio of payment methods.
Selling, general and administrative expenses (SG&A) increased significantly from the same period of the previous fiscal year due to promotional activities aimed at sustainable growth of the BASE business and forward-looking investment in recruitment.
As a result of the above, net sales were ¥6,114 million (14.6% increase year on year) and segment loss was ¥271 million (segment profit of ¥1,376 million in the same period of the previous year).
B) PAY Business
In the PAY business, the Group provides online payment services PAY.JP. In the cumulative 3rd quarter of the fiscal year under review, the gross merchandise volume grew significantly to ¥38,977 million (60.7% increase year on year).
As a result of the above, net sales were ¥1,024 million (60.1% increase year on year) and segment loss was ¥41 million (segment loss of ¥72 million in the same period of the previous year).
C) Other Businesses
In other businesses, the Group provides services such as YELL BANK, which provides business funds to BASE shop owners. The number of its users has been steady since the service was launched in December 2018.
As a result of the above, net sales were ¥38 million (97.0% increase year on year) and segment loss was ¥46 million (segment loss of ¥31 million in the same period of the previous year).
－ 2 －
(2) Overview of Financial Position
(Assets)
Total assets as of the end of the 3rd quarter of the fiscal year under review were ¥29,034 million, an increase of ¥529 million from the end of the previous fiscal year. This was mainly due to increases of ¥231 million in accounts receivable - trade and ¥221 million in prepaid expenses included in other.
(Liabilities)
Liabilities as of the end of the 3rd quarter of the fiscal year under review were ¥13,212 million, an increase of ¥925 million from the end of the previous fiscal year. This was mainly due to a decrease of ¥253 million in income taxes payable included in other due to the payment of income taxes, while an increases of ¥688 million in accounts payable - trade and ¥559 million in deposits received.
(Net assets)
Net assets at the end of the 3rd quarter of the fiscal year under review were ¥15,822 million, a decrease of ¥395 million from the end of the previous fiscal year. This was mainly due to a decrease of ¥467 million in retained earnings resulting from recording of loss attributable to owners of parent.
(3) Overview of forecast of operating results including consolidated financial results
The consolidated earnings forecast for the fiscal year ending December 2021 remains unchanged from the content announced on February 10, 2021.
－ 3 －
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