BELLSYSTEM24 : Consolidated financial results for the Three months ended May 31, 2023

This English document was prepared for reference purpose. Should there be any discrepancy between the translation and the original Japanese text, the latter shall prevail.

Consolidated financial results for the Three months ended May 31, 2023

[IFRS]

		July 12, 2023
Company name	：BELLSYSTEM 24 Holdings, Inc.	Stock exchange listing ：Tokyo
Stock exchange code	：6183	URL ：https://www.bell24.co.jp/en/
Representative	：Shunsuke Noda, President and Chief Executive Officer
Contact	：Toyohisa Tsuji, Managing Executive Officer
TEL	：[phone]

Scheduled date of filing of quarterly reports	：July 13, 2023
Scheduled date of start of dividend payment	：―
Preparation of 1Q earnings presentation material	：Yes
Holding of 1Q earnings briefing	：No
	(Figures are rounded to the nearest million yen)

1. Consolidated financial results for the Three months ended May 31, 2023 (From March 1, 2023 to May 31, 2023)

1. Consolidated operating results

(Percentages represent year-on-year changes)

	Revenue		Operating income	Income before	Net income
		income taxes
	Millions of yen		%	Millions of yen		%	Millions of yen	%	Millions of yen	%
Three months ended	39,370		0.3	4,139		(3.3)	4,088	1.0	3,025	14.7
May 31, 2023
Three months ended	39,244		7.6	4,278		19.6	4,047	13.7	2,637	11.0
May 31, 2022
	Net income		Total Comprehensive	Basic earnings	Diluted earnings
	attributable to owners
	income		per share	per share
	of the parent
	Millions of yen		%	Millions of yen		%		Yen		Yen
Three months ended	2,944		15.1	3,130		1.2		40.02		39.76
May 31, 2023
Three months ended	2,558		10.0	3,093		20.4		34.78		34.56
May 31, 2022

(2) Consolidated financial position

			Total equity	Ratio of equity
	Total asset	Total equity	attributable to owners	attributable to owners
			of the parent	of the parent
	Millions of yen	Millions of yen	Millions of yen	%
As of May 31,2023	181,213	65,255	64,521	35.6
As of February 28, 2023	176,250	64,911	64,224	36.4

2．Dividend

		Dividend per share
	First	Second	Third		Fiscal	Annual
	quarter-end	quarter-end	quarter-end		year-end
	Yen	Yen	Yen		Yen	Yen
Fiscal year ended February 28, 2023	－	30.00	－		30.00	60.00
Fiscal year ended February 29, 2024	－
Fiscal year ended February 29, 2024		30.00	－		30.00	60.00
(planned)
(Note) Revision of most recently announced dividend forecasts : No

3 ．Consolidated financial results forecast for the fiscal year ending February 29, 2024 (From March 1, 2023 to February 29, 2024)

(Percentages represent changes from the same period of previous fiscal year)

											Net income	Basic
						Income before			attributable to
	Revenue		Operating income	Net income	earnings per
		income taxes	owners of the
								share
											parent
	Millions of yen		%	Millions of yen	%	Millions of yen		%	Millions of yen	%	Millions of yen		%	Yen
Fiscal year ending	157,000		0.6	13,800	(7.5)	13,400		(5.3)	9,100	(5.1)	8,800		(5.7)	119.63
February 29, 2024
(Note) Revisions of financial forecast in the latest announcement : No

(Notes)

(1) Changes in status of significant subsidiaries during the period

(Changes in specified subsidiaries accompanying changes in scope of consolidation): No

(2) Changes in accounting policies and accounting estimates

• Changes in accounting policies required by IFRS

• Changes in accounting policies other than ① above

• Changes in accounting estimates

• Yes
• No
• No

1. Number of issued shares (common share)

• Number of issued shares at the end of the period (including treasury shares):

As of May 31,2023	：	73,715,734	shares
As of February 28, 2023	：	73,715,734	shares

• Number of treasury shares at the end of period:

As of May 31,2023	：	144,956	shares
As of February 28, 2023	：	154,106	shares

③ Average number of shares:
Three months ended May 31, 2023	：	73,563,020	shares
Three months ended May 31, 2022	：	73,556,991	shares

• Disclosure regarding the execution of the quarterly review process

This quarterly financial report is outside the scope of quarterly review procedures under the Financial Instruments and Exchange Act. At the time of disclosure of this financial report, review procedures for the Quarterly Consolidated Financial Statements are in progress.

• Explanation about the appropriate use of the results forecasts and other special notes

(Note on forward-looking statements, etc.)

Forward-looking statements, including the results forecasts contained in this material, are based on information currently available for the Company and certain assumptions which the Company deems reasonable. The Company does not intend to provide any guarantee on the realization on these forecasts. Actual business results May differ materially from the forecasts due to various factors.

Condensed Interim Consolidated Financial Statements

（１） Condensed Interim Consolidated Statement of Financial Position（Unaudited）

				(Millions of yen)
		As of		As of
		February 28, 2023		May 31, 2023
Assets
Current assets
Cash and cash equivalents	6,998	7,183
Trade and other receivables	21,232	21,351
Other financial assets	944	163
Other current assets	1,499	1,549
Total current assets	30,673	30,246
Non-current assets
Property, plant and equipment	37,007	39,842
Goodwill	94,900	96,442
Intangible assets	1,668	2,802
Investments accounted for using the equity method	2,181	1,526
Deferred tax assets	2,985	3,017
Other financial assets	6,509	6,975
Other non-current assets	327	363
Total non-current assets	145,577	150,967
Total assets	176,250	181,213

				(Millions of yen)
		As of		As of
		February 28, 2023		May 31, 2023
Liabilities and Equity
Liabilities
Current liabilities
Trade and other payables	7,634	6,930
Borrowings	16,600	17,400
Income taxes payable	2,775	1,136
Liabilities for employee benefits	11,473	12,894
Other financial liabilities	5,375	6,573
Other current liabilities	2,381	4,194
Total current liabilities	46,238	49,127
Non-current liabilities
Borrowings	38,221	37,477
Provisions	2,520	2,505
Liabilities for employee benefits	715	711
Deferred tax liabilities	―	204
Other financial liabilities	23,624	25,909
Other non-current liabilities	21	25
Total non-current liabilities	65,101	66,831
Total liabilities	111,339	115,958
Equity
Common stock	27,079	27,079
Capital surplus	1,268	(1,508)
Other components of equity	325	437
Retained earnings	35,837	38,781
Treasury shares	(285)	(268)
Total equity attributable to owners of the parent	64,224	64,521
Non-controlling interest	687	734
Total equity	64,911	65,255
Total liabilities and equity	176,250	181,213