Hamee : Financial Results for the Third Quarter of the Fiscal Year Ending April 30, 2022

Consolidated Financial Results for the Third Quarter FY04/22

[Japanese GAAP]

				March 14, 2022
Name of listed company Hamee Corp.	Listed stock exchanges	East
Code Number	3134	URL https://hamee.co.jp/
Representative	(Title) President and CEO	(Name) Ikuhiro Mizushima
Contact	(Title) Officer, Corporate Planning Dept.Manager(Name) Ippei Takahashi	(TEL)[phone]
Scheduled date to file	Scheduled	date	of
Quarterly Securities ReportMarch 14, 2022	commencement	of-
		dividend payment
Preparation of supplementary material on quarterly financial results: Yes
Quarterly results briefing		:	None

(Millions of yen are rounded down.)

FY04/22 Q3 consolidated result(May 1, 2021 to January 31, 2021)

(1)Consolidated Operating Results					(Percentages indicate year-on-year changes.)
																	Attributable to
			Net sales		Operating income	Ordinary income	owners of parent
																	Quarter net income
		Millions of yen			%	Millions of yen	%		Millions of yen			%	Millions of yen	%
Q3 FY04/22		9,979	10.2		1,874	13.3		1,928			19.7	1,448	26.5
Q3 FY04/21		9,055	4.6		1,654	21.6		1,610			17.3	1,145	21.8
(NOTE)	Comprehensive income	Q3 FY04/22	1,439Millions of yen(11.4%) Q3 FY04/21	1,291Millions of yen (43.9%)
		Earnings Per share	Diluted Earnings Per share
					Yen						Yen
Q3 FY04/22			91.15						90.88
Q3 FY04/21			72.45						71.84
(2)Consolidated Financial Position
			Total assets			Net assets		Equity Ratio
			Millions of yen			Millions of yen						%
Q3 FY04/22			10,667				7,826							72.5
FY04/21			8,338				6,528							77.1
(Reference) Shareholders' equity Q3 FY04/22	7,730Millions of yen FY04/21 6,429Millions of yen
2.Dividends
								Dividend per share
		End of first		End of		End of the
			second			Term end		Total
		quarter		quarter		third quarter
			Yen			Yen		Yen			Yen			Yen
FY04/21			-			0.00		-		10.00			10.00
FY04/22			-			0.00		-
FY04/22 (Forecast)											20.50			20.50
(NOTE)	Revisions to the most recently announced dividend forecasts	: None

3.Forecasts for the fiscal year ended April 31, 3.2022 (May 1, 2021 to April 30, 2022)

(Percentages indicate year-on-year changes.)

							Net profit		Earnings Per
	Net sales	Operating income	Ordinary income	Attributable to
							owners of parent	Share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen		%	Yen
Full year	14,000	13.2	2,250	3.2	2,248	4.6	1,612		3.6	101.53

(NOTE) Revisions to the consolidated forecasts most recently announced :None

(NOTE) Because we manage our performance on an annual basis, our earnings forecasts are only for the full fiscal year.

※ Notes

(1)Changes of important subsidiaries during the period

: None

(changes in specified subsidiaries resulting in change in scope of consolidation)

New	-	Exclusion	-
(2)Application of particular accounts procedures to the preparation of quarterly	: None
consolidated financial statements
(3)Changes in accounting policies and changes or restatement of accounting estimates
① Changes in accounting policies caused by revision of accounting standards	: Yes
② Changes in accounting policies other than ①		: None
③ Changes in accounting estimates			: None
④ Restatement			: None

(4) Number of shares of outstanding(common stock)

① Number of shares outstanding at the end of the period(including treasury stock)

②Number of treasury stock at the end of the period ③Average number of shares during the period

Q3 FY04/22	16,267,200Shares	FY04/21	16,255,200Shares
Q3 FY04/22	369,481Shares	FY04/21	377,523Shares
Q3 FY04/22	15,892,214Shares	Q3 FY04/21	15,808,571Shares

• Quarterly financial results are not subject to quarterly review by certified public accountants or auditing firms.
• Explanations and other special notes concerning the appropriate use of business performance forecasts

The earnings forecasts and other forward-looking statements herein are based on information currently available to the Company and on certain assumptions deemed reasonable by the Company. Consequently, any statements herein do not constitute assurances regarding actual results by the Company. Actual results may differ significantly from these forecasts for a number of reasons. Please refer to "1. Qualitative Information on Quarterly Financial Results, (3) Explanation of future forecasts such as Consolidated performance Forecasts and Other Forward-Looking Information" on page 4 of the attached material for the assumptions underlying the earnings forecasts and notes on the use of the earnings forecasts.

○Accompanying Materials - Contents
1.Qualitative Information on the current quarter's performance ........................................................	2
(1)	Explanation of Operating Results ...............................................................................	2
(2)	Explanation of Financial Position.................................................................................	4
(3)	Explanation of future forecasts such as Consolidated performance Forecasts....................	4
2. Quarterly Consolidated Financial Statements and Major Notes........................................................	5
(1)Quarterly Consolidated Balance Sheets.........................................................................	5
(2)Quarterly Consolidated Statements of Income and Quarterly Consolidated
	Statements of Comprehensive Income.........................................................................	7
(3)	Notes to Quarterly Consolidated Financial Statements.....................................................	9
	(Notes on the Going Concern Assumption)....................................................................	9
	(Change in scope of consolidation or scope of application of the equity method)................	9
	(Notes on Significant Changes in the Amount of Shareholders' Equity)..............................	9
	(Changes in Accounting Policies) .................................................................................	9
	(Segment Information, etc.) .......................................................................................	11
	(Significant Subsequent Events) .................................................................................	13

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1. Qualitative Information on the current quarter's performance

(1) Explanation of Operating Results

In the third quarters of the current fiscal year, the outlook for the Cumulative economy remained unclear. Although the economy regained stability once due to a substantial decrease in the number of new infections of COVID-19, the outlook remained unclear due to the implementation of priority measures to prevent the spread of spread, etc. due to the spread of new variant stocks.

Under these circumstances, the status of each business segment in the third quarter of the current fiscal year was as follows.

• Commerce Business a. Domestic business

In the third quarter of the fiscal year under review, in addition to the momentum of the new iPhone sales in the second quarter, sales of iFace series were firm during the year-end sales, which is the biggest shopping season in a year, due in part to the sales measures taken by carriers for old models.

Retail: We showed our presence in the market, including winning the Rakuten Shop of the Year 2021 Smartphone, Tablet, and Peripheral Equipment Genre Award for 3 years straight.

Wholesale: Due to the effects of sales measures for old models by carriers, we were able to win more repeat orders than anticipated for both new and old models, resulting in solid sales. As a result, sales were on a par with the same quarter of the previous fiscal year even in a situation in which people's popularity declined due to the spread of COVID-19 by new variants from mid-January onwards.

The gaming monitor brand Pixio, which we have been working to expand into business categories since this fiscal year, was affected by a worldwide shortage of semiconductor supplies. However, as the prospect of product procurement is coming up and we were able to roll out new products in December and January, sales in January 2022 exceeded JPY70 million.

In addition, on January 13, we released ByUR, a cosmetics brand launched as a challenge to the different categories of iFace brands. We are aggressively developing such initiatives as WebCM employing well-known models and creators, postings on social media, and tie-up videos utilizing YouTuber and TikTok.

b. Overseas Business

In the U.S., which is the core of our overseas business, our organizational strength was strengthened to the extent that we can roll out localized products. As a result, iFace increased 82.0% compared with the same quarter of the previous fiscal year, and sales in all categories increased due to favorable sales of our music toys, Otamaton, and low rebound general merchandise. As a result, net sales in the U.S. grew significantly by 105.7% compared with the same quarter of the previous fiscal year. We will continue to enhance localization products.

As a result, the Commerce Business posted net sales of JPY7,532,764 thousand for the third quarter of the current fiscal year (up 6.2% from the same quarter of the previous fiscal year), but segment income (operating income) was JPY1,783,655 thousand (down 4.9%) due to investment in advertising associated with the launch of the Cosmetics Business.

• Platform Business a. Next Engine

At the end of the third quarter, the number of Next Engine contracts totaled 5,236 (up 143 from the second quarter). In addition, against the backdrop of the seasonal trend of the holiday season, which is the busiest season, transactions were brisk through Next Engine, with GMV (order processing amount) at JPY307.5 billion (up 21.3% from the same quarter of the previous year) and average spend per customer at JPY37,077 (up 0.3% from the same quarter of the previous year), all of which were higher than the same quarter of the previous year. As a result, sales exceeded JPY200 million for the first time

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in December on a monthly basis, and in the third quarter of the fiscal year under review, net sales were JPY601,177 thousand (up 18.8% from the same quarter of the previous fiscal year), a record high for quarterly sales. In terms of costs, we continued to invest in the development of cloud infrastructure, and despite a decrease in the operating income margin due to an increase in fixed costs stemming from an increase in server costs of JPY26,475 thousand compared to the same quarter of the previous fiscal year, both sales and profits steadily increased, up 15.5% compared to the same quarter of the previous fiscal year.

In January, we released NEHUB, a service that matches the apps and services of Next Engine platforms that are best suited to solving issues faced by Next Engine users. By creating an environment in which it is easy to match these Next Engine users with the services of partners in the platform, we will strive to realize a robust partner ecosystem.

b. Hamee Consulting Corp.

At Hamee Consulting Corp., which provides sales support consulting for EC businesses, continued to grow. Incomes from EC consulting contracts remained firm, and large-scale orders were received in the EC website production and construction business, which was launched as a new organizational unit from the fiscal year under review.

As a result, net sales in the Platform Business increased 21.4% year-on-year to JPY2,051,494 thousand and segment profit increased 19.6% to JPY850,961 thousand.

• Others

"Others" includes Hometown Tax Payment Support Service, "Hamic POCKET" watch mobile terminal for elementary school students, and "RUKAMO" ethical net shop.

The Hometown Tax Payment Support Service worked to improve the donation amount of existing contract municipalities by implementing various EC marketing measures, including the use of advertising and e-mail magazine distribution, which were strengthened by increasing the number of web designers from the beginning of the fiscal year under review, and by developing new returns, and steadily proceeded with preparations for the November-December quarter, when the hometown tax payment market will be the most active. As a result, the amount of donations in the third quarter of the fiscal year under review increased 35.5% from the same quarter of the previous fiscal year, and net sales increased 41.8% from the same quarter of the previous fiscal year, a record high for quarterly sales.

As a result, sales in the cumulative third quarter of the fiscal year under review amounted to JPY394,876 thousand (up 45.5% from the same quarter of the previous year). On the other hand, segment income (operating loss) amounted to a loss of JPY90,316 thousand (loss of JPY174,497 thousand for the same quarter of the previous year).

As a result of the above, sales in the cumulative third quarter of the fiscal year under review amounted to JPY9,979,134 thousand (up 10.2% from the same quarter of the previous fiscal year), operating margin was JPY1,874,393 thousand (up 13.3%), ordinary margin was JPY1,928,444 thousand (up 19.7%), and quarterly net profit attributable to owners of parent was JPY1,448,573 thousand (up 26.5%).

As a change in accounting policy, we have applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and other standards from the beginning of the first quarter of the current fiscal year. For details, please refer to "2. Quarterly Consolidated Financial Statements and Major Notes, (3) Notes to Quarterly Consolidated Financial Statements (Changes in Accounting Policies)."

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