Direct Marketing MiX : Consolidated Financial Results for the Three Months Ended March 31, 2021 (Under IFRS)

Note: This document has been translated from a part of 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 Three Months Ended March 31, 2021

(Under IFRS)

May 14, 2021

Company name:	Direct Marketing MiX Inc.
Listing:	Tokyo Stock Exchange
Securities code:	7354
URL:	https://dmix.co.jp/
Representative:	Yuki Kobayashi, Representative Director and President, CEO
Inquiries:	Motoyoshi Doi, Director, CFO
TEL:	[phone]

Scheduled date of the submission of quarterly securities report:	May 14, 2021
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results presentation meeting:	None

(Yen amounts are rounded to the nearest million, unless otherwise noted.)

1. Consolidated financial results for the three months ended March 31, 2021 (from January 1, 2021 to March 31, 2021)

(1) Consolidated operating results (cumulative)		(Percentages indicate year-on-year changes.)
		Revenue		Operating profit	Profit before tax	Profit
	Three months ended	Millions of yen		%	Millions of yen		%	Millions of yen		%	Millions of yen		%
	March 31, 2021	7,115		18.5	1,460		10.6	1,355		3.3	926		6.1
	March 31, 2020	6,002		-	1,320		-	1,311		-	873		-
		Profit attributable to	Total comprehensive	Basic earnings	Diluted earnings
		owners of parent	income		per share		per share
	Three months ended	Millions of yen		%	Millions of yen		%			Yen			Yen
	March 31, 2021	926		6.1	926		6.1			46.20			38.82
	March 31, 2020	873		-	873		-			43.53			36.69

Note: The Company conducted a 300-for-1 share split of its ordinary shares on July 28, 2020. "Basic earnings per share" and "Diluted earnings per share" have been calculated assuming that the share split was conducted at the beginning of the fiscal year ended December 31, 2020.

(2) Consolidated financial position

			Equity attributable to	Ratio of equity
	Total assets	Total equity	attributable to owners
	owners of parent
			of parent
As of	Millions of yen	Millions of yen	Millions of yen	%
March 31, 2021	21,248	8,833	8,833	41.6
December 31, 2020	21,251	8,000	8,000	37.6

2. Cash dividends

		Dividends per share
	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Annual total
	Yen	Yen	Yen	Yen	Yen
Fiscal year ended	-	0.00	-	5.00	5.00
December 31, 2020
Fiscal year ending	-
December 31, 2021
Fiscal year ending
December 31, 2021		0.00	-	10.00	10.00
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)

								(Percentages indicate year-on-year changes.)
		Revenue		Operating profit	Profit before tax	Profit
		Millions of yen		%	Millions of yen		%	Millions of yen	%	Millions of yen	%
	Fiscal year ending	26,800		19.3	3,800		6.0	3,700	5.6	2,500	3.1
	December 31, 2021
		Profit attributable to	Basic earnings
		owners of parent	per share
		Millions of yen		%			Yen
	Fiscal year ending	2,500		3.1	124.69
	December 31, 2021
Note: Revisions to the earnings forecasts most recently announced: None

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
2. Changes in accounting policies and changes in accounting estimates

(i)	Changes in accounting policies required by IFRS:	None
(ii)	Changes in accounting policies due to other reasons:	None
(iii)	Changes in accounting estimates:	None

1. Number of issued shares (ordinary shares)

1. Total number of issued shares at end of the period (including treasury shares)

As of March 31, 2021	20,050,500 shares
As of December 31, 2020	20,050,500 shares

(ii) Number of treasury shares at end of the period

As of March 31, 2021	64 shares
As of December 31, 2020	25 shares

1. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

For the three months ended March 31, 2021	20,050,442 shares
For the three months ended March 31, 2020	20,050,500 shares

Note: The Company conducted a 300-for-1 share split of its ordinary shares on July 28, 2020. "Total number of issued shares at end of the period," "Number of treasury shares at end of the period" and "Average number of shares outstanding during the period" have been calculated assuming that the share split was conducted at the beginning of the fiscal year ended December 31, 2020.

• Quarterly financial results reports are exempt from quarterly reviews conducted by certified public accountants or an audit corporation.
• Proper use of earnings forecasts, and other special items
  (Caution regarding forward-looking statements and others)
  The forward-looking statements, including earnings forecasts contained in this report are based on currently available information and certain assumptions determined as rational. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Actual performance may significantly differ from these forecasts due to various factors in the future. The impact of the novel coronavirus disease (COVID-19) on the Group's earnings is expected to be immaterial. On the other hand, matters surrounding the impact of COVID-19, such as when it will be resolved, remains unclear. Accordingly, if it becomes necessary to revise the earnings forecast in light of future business trends, we will disclose such revisions promptly.
  (Method of accessing supplementary material on quarterly financial results)
  Supplementary material on quarterly financial results is disclosed on the same day on TDnet.

Condensed Quarterly Consolidated Financial Statements

1. Condensed quarterly consolidated statement of financial position

				(Thousands of yen)
		As of December 31, 2020		As of March 31, 2021
Assets
Current assets
Cash and cash equivalents	3,692,215	1,724,183
Trade and other receivables	3,029,397	4,509,338
Other current assets	155,520		163,863
Total current assets	6,877,132	6,397,384
Non-current assets
Property, plant and equipment	832,160	936,999
Right-of-use assets	1,706,159	2,013,413
Goodwill	10,984,224	10,984,224
Other intangible assets	80,127	77,152
Deferred tax assets	298,256	298,256
Other financial assets	467,345	535,785
Other non-current assets	5,686		5,204
Total non-current assets	14,373,958		14,851,033
Total assets	21,251,090	21,248,417

- 1 -

				(Thousands of yen)
		As of December 31, 2020		As of March 31, 2021
Liabilities and equity
Liabilities
Current liabilities
Trade and other payables	3,339,384	2,920,817
Borrowings	613,040	694,992
Income taxes payable	829,209	428,497
Other financial liabilities	581,624	663,158
Other current liabilities	709,302		901,730
Total current liabilities	6,072,559	5,609,194
Non-current liabilities
Borrowings	5,886,873	5,262,081
Provisions	193,491	212,086
Other financial liabilities	1,093,196	1,326,400
Other non-current liabilities	4,622		5,661
Total non-current liabilities	7,178,182		6,806,228
Total liabilities	13,250,741	12,415,422
Equity
Share capital	1,600,000	1,600,000
Capital surplus	1,609,578	1,609,578
Retained earnings	4,707,624	5,533,708
Treasury shares	(69)	(181)
Other components of equity	83,216		89,889
Total equity attributable to owners of parent	8,000,349		8,832,994
Total equity	8,000,349		8,832,994
Total liabilities and equity	21,251,090	21,248,417

- 2 -