Consolidated Financial Results
for the Fiscal Year Ended June 30, 2022
[Japanese GAAP]
August 9, 2022
Company name: i3 Systems, Inc.
Stock exchange listing: Tokyo Stock Exchange
Code number: 4495
URL: https://www.i3-systems.com/
Representative: Tsutomu Sasaki, President and CEO
Contact: Takashi Ono, Manager, Accounting and Finance Department
Phone: +81-92-552-4358
Scheduled date of ordinary general meeting of shareholders: September 28, 2022
Scheduled date of filing annual securities report: September 28, 2022
Scheduled date of commencing dividend payments: September 29, 2022
Availability of supplementary explanatory materials on financial results: Yes
Schedule of financial results briefing session: Yes (for institutional investors, analysts and individual investors)
(Amounts of less than one million yen are rounded down.) | ||||||||||||||||||||
1. Consolidated Financial Results for the Fiscal Year Ended June 30, 2022 (July 1, 2021 - June 30, 2022) | ||||||||||||||||||||
(1) Consolidated Operating Results (cumulative) | (% indicates changes from the previous corresponding period.) | |||||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||||||||||
owners of parent | ||||||||||||||||||||
Fiscal year ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||||||||
June 30, 2022 | 2,454 | - | 826 | - | 817 | - | 539 | - | ||||||||||||
June 30, 2021 | - | - | - | - | - | - | - | - | ||||||||||||
(Note) Comprehensive | income: | |||||||||||||||||||
Fiscal year ended June 30, 2022: ¥539 million ( - %) | ||||||||||||||||||||
Fiscal year ended June 30, 2021: - million ( - %) | ||||||||||||||||||||
Basic earnings | Diluted earnings | Return on equity | Ratio of ordinary | Ratio of operating | ||||||||||||||||
profit to total | income to net | |||||||||||||||||||
per share | per share | (ROE) | ||||||||||||||||||
assets | sales | |||||||||||||||||||
Fiscal year ended | Yen | Yen | % | % | % | |||||||||||||||
June 30, 2022 | 102.67 | 100.85 | 24.3 | 25.5 | 33.7 | |||||||||||||||
June 30, 2021 | - | - | - | - | - | |||||||||||||||
(Reference) Equity in | earnings of associated companies: | |||||||||||||||||||
Fiscal year ended June 30, 2022 | - million yen | |||||||||||||||||||
Fiscal year ended June 30, 2021 | - million yen |
(Note) The Company did not begin preparing consolidated financial statements until the fiscal year ended June 30, 2022, and therefore the figures for the fiscal year ended June 30, 2021 and year-on-year changes are not presented. In addition, because this is the first year in which consolidated financial statements have been prepared, return on equity and ratio of ordinary profit to total assets are based on shareholders' equity and total assets, respectively, as of the end of the fiscal year.
(2) Consolidated Financial Position
Total assets | Net assets | Equity ratio | Total equity per | |
share | ||||
Millions of yen | Millions of yen | % | yen | |
As of June 30, 2022 | 3,202 | 2,223 | 69.3 | 420.88 |
As of June 30, 2021 | - | - | - | - |
(Reference) Shareholders' equity: As of June 30, 2022: ¥2,220 million As of June 30, 2021: - million
(Note) The Company did not begin preparing consolidated financial statements until the fiscal year ended June 30, 2022, and therefore the figures for the fiscal year ended June 30, 2021 are not presented.
(3) Consolidated Cash Flows
Cash flows from | Cash flows from | Cash flows from | Cash and cash | |
equivalents at end of | ||||
operating activities | investing activities | financing activities | ||
year | ||||
Millions of yen | Millions of yen | Millions of yen | Millions of yen | |
Fiscal year ended | 275 | (208) | (36) | 2,337 |
June 30, 2022 | ||||
Fiscal year ended | - | - | - | - |
June 30, 2021 |
(Note) The Company did not begin preparing consolidated financial statements until the fiscal year ended June 30, 2022, and therefore the figures for the fiscal year ended June 30, 2021 are not presented.
2. Dividends
Annual dividends per share | Total | Dividend | Ratio of | |||||
dividends to | ||||||||
1st | 2nd | 3rd | dividends | payout ratio | ||||
total equity | ||||||||
quarter- | quarter- | quarter- | Year-end | Total | (Annual) | (Consolidated) | ||
(Consolidated) | ||||||||
end | end | end | ||||||
Fiscal year ended | Yen | Yen | Yen | Yen | Yen | Millions of yen | % | % |
- | 0.00 | - | 10.00 | 10.00 | 52 | - | - | |
June 30, 2021 | ||||||||
Fiscal year ended | - | 0.00 | - | 20.00 | 20.00 | 105 | 19.5 | 4.8 |
June 30, 2022 | ||||||||
Fiscal year ending | ||||||||
June 30, 2023 | - | 0.00 | - | 20.00 | 20.00 | - | ||
(Forecast) |
(Note)The Company did not begin preparing consolidated statements until the fiscal year ended June 30, 2022, and therefore the consolidated dividend payout ratio and the consolidated ratio of dividends to total equity for the fiscal year ended June 30, 2021 are not presented. Also, because this is the first year in which consolidated financial statements have been prepared, the consolidated ratio of dividends to total equity for the fiscal year ended June 30, 2022 has been calculated based on consolidated total equity per share as of the end of the fiscal year.
3. Consolidated Financial Results Forecast for the Fiscal Year Ending June 30, 2023 (July 1, 2022 - June 30, 2023) (% indicates changes from the previous corresponding period.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Basic earnings | |||||||
owners of parent | per share | ||||||||||
Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | Yen | |||
Full year | 2,734 | 11.4 | 657 | (20.5) | 658 | (19.5) | 452 | (16.2) | 85.76 | ||
* Notes: | |||||||||||
(1) Changes in significant subsidiaries during the period: Yes | |||||||||||
(Changes in specified subsidiaries resulting in changes in scope of consolidation) | |||||||||||
Newly added: | 1 company i3-1 Investment Limited Partnership | ||||||||||
Excluded: | - companies |
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
- Changes in accounting policies due to the revision of accounting standards: Yes
- Changes in accounting policies other than 1) above: None
- Changes in accounting estimates: None
- Retrospective restatement: None
- Total number of issued and outstanding shares (common shares)
- Total number of issued and outstanding shares at the end of the period (including treasury shares):
June 30, 2022: | 5,274,850 shares |
June 30, 2021: | 5,238,350 shares |
2) Total number of treasury shares at the end of the period: | ||||||||||||||||||||||||
June 30, 2022: | 121 shares | |||||||||||||||||||||||
June 30, 2021: | 121 shares | |||||||||||||||||||||||
3) Average number of shares outstanding during the period: | ||||||||||||||||||||||||
Fiscal year ended June 30, 2022: | 5,255,130 shares | |||||||||||||||||||||||
Fiscal year ended June 30, 2021: | 5,201,437 shares | |||||||||||||||||||||||
(Reference) Overview of non-consolidated results | ||||||||||||||||||||||||
1. Non-consolidated Financial Results for the Fiscal Year Ended June 30, 2022 (July 1, 2021 - June 30, 2022) | ||||||||||||||||||||||||
(1) Non-consolidated operating results | (% indicates changes from the previous corresponding period.) | |||||||||||||||||||||||
Net sales | Operating profit | Ordinary profit | Profit | |||||||||||||||||||||
Fiscal year ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | ||||||||||||||||
June 30, 2022 | 2,454 | 21.0 | 835 | 46.7 | 822 | 46.9 | 544 | 29.6 | ||||||||||||||||
June 30, 2021 | 2,029 | 23.6 | 569 | 38.2 | 559 | 39.3 | 420 | 32.1 | ||||||||||||||||
Basic earnings per | Diluted earnings | |||||||||||||||||||||||
share | per share | |||||||||||||||||||||||
Fiscal year ended | Yen | Yen | ||||||||||||||||||||||
June 30, 2022 | 103.60 | 101.76 | ||||||||||||||||||||||
June 30, 2021 | 80.79 | 78.81 | ||||||||||||||||||||||
(2) Non-consolidated financial position | ||||||||||||||||||||||||
Total assets | Net assets | Equity ratio | Total equity per | |||||||||||||||||||||
share | ||||||||||||||||||||||||
Millions of yen | Millions of yen | % | yen | |||||||||||||||||||||
As of June 30, 2022 | 3,204 | 2,226 | 69.4 | 421.81 | ||||||||||||||||||||
As of June 30, 2021 | 2,830 | 1,681 | 59.4 | 320.92 | ||||||||||||||||||||
(Reference) Shareholders' equity: As of June 30, 2022: ¥2,224 million As of June 30, 2021: ¥1,681 million
- These financial results are outside the scope of review by certified public accountants or an audit firm.
-
Explanation of the proper use of financial results forecast and other notes
The financial results forecasts and other forward-looking statements herein are based on information currently available and certain assumptions considered to be reasonable, and the Company does not in any way guarantee the achievement of the projections. Actual results may differ significantly from these forecasts due to a wide range of factors. For assumptions underlying the financial results forecasts and notes on their use, please refer to "(4) Future Outlook" in "1. Overview of Operating Results, etc." on page 5 of the attached material.
Table of Contents - Attachments | ||
(2) | Overview of Financial Position .................................................................................................................. | 4 |
(3) | Overview of Cash Flows ............................................................................................................................ | 4 |
(4) | Future Outlook............................................................................................................................................ | 5 |
2. Basic Approach to Selection of Accounting Standards ................................................................................................ | 5 | |
3. Consolidated Financial Statements and Principal Notes ....................................................................................................... | 6 | |
(1) | Consolidated Balance Sheets...................................................................................................................... | 6 |
(2) | Consolidated Statements of Income and Comprehensive Income.............................................................. | 7 |
(3) | Consolidated Statement of Changes in Equity ........................................................................................... | 9 |
(4) | Consolidated Statement of Cash Flows .................................................................................................... | 10 |
(5) | Notes to Consolidated Financial Statements ............................................................................................ | 11 |
(Notes on going concern assumption) ............................................................................................................ | 11 | |
(Changes in accounting policies).................................................................................................................... | 11 | |
(Segment information, etc.) ............................................................................................................................ | 12 | |
(Per Share Information) .................................................................................................................................. | 13 | |
(Significant Subsequent Events)..................................................................................................................... | 14 |
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1. Overview of Operating Results, etc.
The Group did not begin preparing consolidated financial statements until the fiscal year ended June 30, 2022, and therefore analytical comparisons with the end of the previous fiscal year have not been performed.
(1) Overview of Operating Results
During the fiscal year ended June 30, 2022, the economic environment was affected by declarations of special measures in response to the spread of COVID-19 variants, which led to periods during which restrictions on economic activity were reinstated, but progress has been made in vaccinations, the spread of the disease has slowed, and we are moving toward a resumption of economic activity. On the other hand, there are rising concerns about the increasingly serious situation in Ukraine, soaring prices for crude oil and other resources, trends in the monetary policies of various countries and other issues, which have led to a continuation of uncertainty regarding the future.
In this market environment, the i3 Group, which has designated the period since it was listed in July 2020 as the third phase of its founding, implemented a renewal of the corporate brand in June 2022. We have redefined our purpose as "Become the matrix for realizing unknown ideas that lead to smiles," and our value proposition as "Using the power of design and engineering to support those who take on challenges," while adopting "Enjoy challenges" as our brand slogan. By fostering a culture that thrives on challenge, we aim to become a company that uses IT as the basis for actively taking on new challenges.
In the fiscal year ended June 30, 2022, we continued to strengthen its workforce in preparation for continuous growth in the business going forward, and took proactive steps to recruit human resources, mainly in the Product Development, Sales, and Customer Success divisions. To coincide with this renewal of the corporate brand, we are also focusing on rolling out recruitment adverts with the aim of acquiring human resources. These include displaying advertisements on bus stops and within station facilities in the Fukuoka area, and distributing digital video commercials on other media.
In addition, we are continuing to make positive changes to the working environment, and the Company was recently recognized for the second consecutive year by the Great Place to Work® Institute Japan, which performs awareness surveys of employees in accordance with global standards, and which scored i3 Systems highly in the 2022 edition of the Best Workplaces rankings. Furthermore, 20% of the new graduates that were hired in April 2022 were of foreign nationality, showing that our efforts to create a diverse organization are making progress.
In addition, we are aggressively working on initiatives to generate additional sources of revenue through new products, new services, M&A, and CVC (corporate venture capital), with the objective of preparing to achieve sustainable growth for the i3 Group. During the second quarter of the fiscal year ended June 30, 2022, we established a new division specializing in the field of investments, and which has already begun investment activities. Investments mainly target mobile, SaaS, security, and other areas closely related to the Company's business domain. We may also invest in companies involved in resolving societal issues and in local companies operating in Kyushu, where the Company is headquartered. With these investment activities as a driver, we seek to further accelerate the growth of the i3 Group by expanding the CLOMO business through the discovery of new partners and products for cross-selling. We are also creating new businesses in preparation for diversification, as well as aiming to support entrepreneurs as they work to create new value.
As a result of such initiatives, consolidated net sales in the fiscal year ended June 30, 2022 were ¥2,454,410 thousand, operating profit was ¥826,704 thousand, ordinary profit came to ¥817,879 thousand, and profit attributable to owners of parent was ¥539,529 thousand.
Operating performance by segment was as follows.
In the second quarter of the fiscal year ended June 30, 2022, the Company changed from reporting the previous single segment to classifying its figures into two segments: the "CLOMO Business" and the "Investment Business."
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i3 Systems Inc. published this content on 09 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2022 11:05:04 UTC.