TEMONA. Inc. (3985) - Earnings Report for the Third Quarter of the Fiscal Year Ending September 30, 2021
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August 10, 2021
TEMONA. Inc.
Earnings Report for the Third Quarter of the Fiscal Year Ending September 30, 2021
[Japanese GAAP] (Non-Consolidated)
Stock listings: | Tokyo Stock Exchange (First Section) |
Securities code: | 3985 |
URL: | https://temona.co.jp/ |
Representative: | Hayato Sagawa, president & representative director |
Information contact: | Takayuki Shigei, executive officer, CFO |
Telephone | +81-3-6635-6452 |
Scheduled dates | |
Filing of statutory quarterly financial report: | August 10, 2021 |
Dividend payout: | - |
Supplementary materials to financial results | No |
available: | |
Quarterly earnings presentation held: | No |
(Amounts rounded down to the nearest million yen)
1. Financial Results for the Nine Months Ended June 30, 2021 (October 1, 2020 to June 30, 2021)
(1) Operating Results | (Percentage figures represent year-on-year changes) | |||||||||||
Net sales | Operating profit | Ordinary profit | Profit for the period | |||||||||
Nine Months Ended | ¥ million | % | ¥ million | % | ¥ million | % | ¥ million | % | ||||
Jun. 30, 2021 | 1,809 | 15.7 | 369 | 279.8 | 369 | 274.0 | 229 | 312.0 | ||||
Jun. 30, 2020 | 1,563 | 41.8 | 97 | (42.0) | 98 | (33.4) | 55 | (39.2) | ||||
Basic earnings per | Diluted earnings | |||||||||||
share | per share | |||||||||||
Nine Months Ended | ¥ | ¥ | ||||||||||
Jun. 30, 2021 | 21.64 | 21.42 | ||||||||||
Jun. 30, 2020 | 5.14 | 5.03 |
Note: The Company disclosed the financial results for the nine months ended June 30, 2020, on a consolidated basis, while the financial results for the nine months ended June 30, 2021, are presented on a non-consolidated basis. To facilitate year-on-year comparisons, the financial results for the nine months ended June 30, 2020, are presented on a non-consolidated basis in this earnings report.
(2) Financial Position
Total assets | Net assets | Equity ratio | |
¥ million | ¥ million | % | |
As of Jun. 30, 2021 | 2,156 | 1,299 | 60.0 |
As of Sep. 30, 2020 | 2,034 | 1,061 | 51.8 |
Reference: Total shareholders' equity: June 30, 2021: ¥1,293 million September 30, 2020: ¥1,054 million
TEMONA. Inc. (3985) - Earnings Report for the Third Quarter of the Fiscal Year Ending September 30, 2021
2. Dividends
Annual dividends | |||||||||
End-first quarter | End-second quarter | End-third quarter | Fiscal year-end | Annual total | |||||
¥ | ¥ | ¥ | ¥ | ¥ | |||||
FY ended | - | 0.00 | - | 0.00 | 0.00 | ||||
Sep. 30, 2020 | |||||||||
FY ending | - | 0.00 | - | ||||||
Sep. 30, 2021 | |||||||||
FY ending | |||||||||
Sep. 30, 2021 | 0.00 | 0.00 | |||||||
(Forecast) |
Note: No changes were made to the latest release of dividend forecasts.
3. Earnings Forecast for the Fiscal Year Ending September 30, 2021 (October 1, 2020 to September 30, 2021)
(Percentage figures represent year-on-year changes)
Net sales | Operating profit | Ordinary profit | Profit for the | Basic earnings | ||||||
period | per share | |||||||||
¥ million | % | ¥ million | % | ¥ million | % | ¥ million | % | ¥ | ||
Full year | 2,814 | 22.3 | 412 | 148.0 | 407 | 147.2 | 248 | 158.1 | 23.66 | |
Note: No changes were made to the latest release of earnings forecasts.
Notes
(1) Use of accounting methods specific to preparation of the quarterly financial statements: Yes
Note: For details, please see "(Use of accounting methods specific to preparation of the financial statements)" under "(3) Notes on the Financial Statements" on page 8 in section "2. Financial Statements and Main Notes" in the Accompanying Materials.
- Changes in accounting policy, changes in accounting estimates, and retrospective restatement:
- Changes in accordance with amendments to accounting standards: None
- Changes other than the above 1): None
- Changes in accounting estimates: None
- Retrospective restatement: None
- Number of shares issued (common stock)
- Number of shares issued at end of period (treasury shares included):
June 30, 2021: | 11,373,592 shares |
September 30, 2020: | 11,256,048 shares |
2) Number of shares held in treasury at end of period:
June 30, 2021: | 745,317 shares |
September 30, 2020: | 745,292 shares |
3) Average number of shares outstanding during the period:
June 30, 2021: | 10,592,110 shares |
June 30, 2020: | 10,814,219 shares |
Note. The Company has introduced a "Board Benefit Trust" and an "Employees Benefit Trust". The Company's shares held by these trusts (September 30, 2020: 744,500 shares, June 30, 2021: 744,500 shares) are included in the number of treasury shares.
- Quarterly earnings reports are exempt from quarterly reviews by certified public accountants and the accounting auditor.
*Appropriate Use of Earnings Forecasts and Other Important Information
The above forecasts, which constitute forward-looking statements, are based on information available to the Company as of the date of the release of this document. These forward-looking statements are not guarantees of future performance, and actual results may differ materially from those expressed or implied herein due to a range of factors. For the assumptions underlying the forecasts herein and other notice on the use of earnings forecasts, please refer to "(3) Earnings Forecast and Other Forward-Looking Statements" on page 4 in section "1. Explanation of Operating Results and Financial Position" in the Accompanying Materials.
TEMONA. Inc. (3985) - Earnings Report for the Third Quarter of the Fiscal Year Ending September 30, 2021
Accompanying Materials | |
Contents | |
1. Explanation of Operating Results and Financial Position | 2 |
(1) Operating Results | 2 |
(2) Financial Position | 4 |
(3) Earnings Forecast and Other Forward-Looking Statements | 4 |
2. Financial Statements and Main Notes | 5 |
(1) Balance Sheet | 5 |
(2) Statement of Income | 7 |
(3) Notes on the Financial Statements | 8 |
(Notes on the going-concern assumption) | 8 |
(Notes on significant changes in the amount of shareholders' equity) | 8 |
(Use of accounting methods specific to preparation of the financial statements) | 8 |
(Additional information) | 8 |
(Segment information) | 8 |
(Significant subsequent events) | 8 |
1
TEMONA. Inc. (3985) - Earnings Report for the Third Quarter of the Fiscal Year Ending September 30, 2021
1. Explanation of Operating Results and Financial Position
- Operating Results
The Company disclosed the financial results for the nine months ended June 30, 2020, on a consolidated basis, while the financial results for the nine months ended June 30, 2021, are presented on a non-consolidated basis. To facilitate year-on-year comparisons, the financial results for the nine months ended June 30, 2020, are presented on a non-consolidated basis in this earnings report.
Non-consolidated financial results are as follows.
(Unit: 1,000 yen) | |||||||
Nine months ended | Nine months ended | ||||||
June 30, 2020 | June 30, 2021 | Change | Change | ||||
(%) | |||||||
Amount | Weighting | Amount | Weighting | ||||
(%) | (%) | ||||||
Revenue | 1,563,911 | 100.0 | 1,809,444 | 100.0 | 245,533 | 15.7 | |
Cost of sales | 540,517 | 34.6 | 694,808 | 38.4 | 154,291 | 28.5 | |
Gross profit | 1,023,394 | 65.4 | 1,114,636 | 61.6 | 91,242 | 8.9 | |
SG&A expenses | 926,131 | 59.2 | 745,274 | 41.2 | (180,857) | (19.5) | |
Operating profit | 97,262 | 6.2 | 369,361 | 20.4 | 272,099 | 279.8 | |
Ordinary profit | 98,738 | 6.3 | 369,295 | 20.4 | 270,556 | 274.0 | |
Profit for the | 55,642 | 3.6 | 229,229 | 12.7 | 173,587 | 312.0 | |
period | |||||||
In the nine months ended June 30, 2021, the prolonged impact of COVID-19 weighed on Japan's economy. Although progress with vaccinations offers some hope for a recovery in certain sectors, the economic outlook remains uncertain.
According to a Ministry of Economy, Trade and Industry survey on the domestic e-commerce market,
- market connected with the Company's business, business-to-consumere-commerce("B2C-EC")market transactions in 2020 decreased 0.43% year on year to 19.3 trillion yen while business-to- business e-commerce("B2B-EC")market transactions fell 5.1% to 334.9 trillion yen. Meanwhile, the e-commerce ratio*1, which is an indicator of the market penetration of e-commerce, continued to increase, rising to 8.08% for B2C-EC and 33.5% for B2B-EC, and the digitalization of commercial transactions is expected to continue to advance. In recent years, the continued rise in customer acquisition costs owing to population decline and other factors has boosted demand for subscription businesses, such as cloud-based businesses.
In this business environment, the Company has been working in line with its management philosophy, "Make business and everyday life easier"*2, to popularize recurring revenue business models. The Company is doing this through focusing efforts on functional enhancement of Subsc-Store,an online shopping cart system for B2C businesses that specialize in subscription-basedbusiness. In addition, to provide even greater value to Subsc-Storeand Tamago Repeat customers, the Company has expanded services and options relating to ancillary businesses, such as the Chatbot, Subsc-Atobarai,and Temonavi businesses.
To promote greater service lineup selection and concentration, the Company incorporated the "members-onlye-commerce" functions of Subsc-Beauty into Subsc-@ and shifted the sales structure targeting brick-and-mortar stores to Subsc-@. These initiatives are contributing to further monetization of these services while also expanding their target markets.
2
TEMONA. Inc. (3985) - Earnings Report for the Third Quarter of the Fiscal Year Ending September 30, 2021
The following is a breakdown of revenue generated by each of the services provided by the E- Commerce Support Business, the Company's only reportable segment.
(Unit: 1,000 yen)
Nine months ended | Nine months ended | ||||||
Service | June 30, 2020 | June 30, 2021 | Change | Change | |||
Amount | Weighting | Amount | Weighting | (%) | |||
(%) | (%) | ||||||
Subsc-Store | 262,562 | 16.8 | 517,232 | 28.6 | 254,670 | 97.0 | |
a | |||||||
Tamago Repeat | 787,675 | 50.4 | 586,740 | 32.4 | (200,934) | (25.5) | |
Subtotal | 1,050,237 | 67.2 | 1,103,972 | 61.0 | 53,735 | 5.1 | |
Payment fees | |||||||
(excluding Subsc- | 404,392 | 25.9 | 450,469 | 24.9 | 46,076 | 11.4 | |
b | Atobarai) | ||||||
Subsc-Atobarai | 930 | 0.1 | 148,201 | 8.2 | 147,270 | 15,829.6 | |
Subtotal | 405,323 | 25.9 | 598,670 | 33.1 | 193,347 | 47.7 | |
c | Others | 108,350 | 6.9 | 106,801 | 5.9 | (1,549) | (1.4) |
Total (a+b+c) | 1,563,911 | 100.0 | 1,809,444 | 100.0 | 245,533 | 15.7 | |
- Tamago Repeat and Subsc-Store service user accounts totaled 1,119 as of June 30, 2021, up
8.9% year on year, generating revenue totaling 1,103,972 thousand yen during the period, 5.1% more than in the same period of the previous year.
Subsc-Store service user accounts totaled 424, a 71.0% increase from a year earlier, generating revenue of 517,232 thousand yen, a year-on-year increase of 97.0%, with the growth being driven by users' increased use of service options, such as Temonavi and Chatbot.
The Tamago Repeat service has halted new sales in order to focus on sales of successor service, Subsc-Store. As a result its service user accounts decreased to 695, down 10.9% year on year, and revenue fell to 586,740 thousand yen, down 25.5% year on year. - In the first nine months of the fiscal year, the gross transaction volume of services provided by the Company grew at a somewhat sluggish pace, increasing just 4.9% year on year to 116.2 billion yen. However, revenue from settlement service fees expanded 47.7% year on year to 598,670 thousand yen owing to an increase in transactions for Subsc-Atobarai, the Company's own payment/settlement service.
- Revenue from "Others", which includes Subsc-@ and Subsc-Store B2B, fell 1.4% year on year to 106,801 thousand yen, as the dropping off of sales from consulting services supporting customers adopting Subsc-Beauty offset an increase in webpage production orders related to Subsc-@.
As a result of the above factors, total revenue for the nine months ended June 30, 2021, came to 1,809,444 thousand yen, a year-on-year gain of 15.7%.
Cost of sales rose 28.5% to 694,808 thousand yen, owing to a large increase in costs related to increasing revenue from Subsc-Atobarai, the Company's own payment/settlement service.
Selling, general and administrative expenses totaled 745,274 thousand yen, 19.5% less than a year earlier, when selling, general and administrative expenses increased with the recording of expenses relating to research and development outsourced to a subsidiary, consulting fees related to the establishment of a stock compensation system, and commission fees relating to a business acquisition, all of which were recorded in the first half of the previous fiscal year.
As a result, operating profit for the nine months ended June 30, 2021, came to 369,361 thousand yen, up 279.8% year on year, ordinary profit totaled 369,295 thousand yen, up 274.0%, and profit for the
3
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Temona Inc. published this content on 19 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 August 2021 06:23:06 UTC.