En japan : Fiscal Year Ended March 31, 2021, Earnings Announcement

en Japan Inc.

Fiscal Year Ended March 31, 2021, Earnings Announcement [under Japanese GAAP] (Consolidated)

Company

Listing

May 13, 2021

en Japan Inc.

First Section of the Tokyo Stock Exchange

Name

Exchanges

Stock Code

4849

URL

https://corp.en-japan.com/

Representative (Title)

President

(Name)

Takatsugu Suzuki

Executive Officer and

Contact (Title)

Administration Division

(Name)

Tomoki Tamai

Telephone [phone]

Director

Regular General Shareholders' Meeting

June 24, 2021

Scheduled date to begin dividend payments

June 25, 2021

Scheduled date for submission of Securities Report

June 25, 2021

Preparation of Summary Supplementary Explanatory Materials

Yes

Earnings Briefing

Yes (for analysts and institutional investors)

(Figures rounded down to nearest million yen)

1. FYE 03/2021 Consolidated Earnings (From April 1, 2020 to March 31, 2021)

(1) Consolidated Operating Results

(Percentages indicate percent change from the prior fiscal year)

Net Sales

Operating Income

Ordinary Income

Profit Attributable to

Owners of Parent

Million yen

%

Million yen

%

Million yen

%

Million yen

%

FYE 03/2021

42,725

-24.8

7,771

-29.4

7,939

-28.2

3,502

-50.9

FYE 03/2020

56,848

16.7

11,005

-5.6

11,057

-6.6

7,125

-12.5

(Note) Comprehensive

income

FYE03/2021:

3,357 million yen (-52.3 %) FYE03/2020: 7,038 million yen (-15.0 %)

EPS

Ordinary

Operating

Fully Diluted EPS

ROE

Income to Total

Income to Sales

Assets

Yen

Yen

%

%

%

FYE 03/2021

78.19

77.96

9.5

16.1

18.2

FYE 03/2020

156.23

155.77

19.6

21.7

19.4

(2) Consolidated Financial Position

Total Assets

Net Assets

Equity Ratio

Net Assets per Share

Million yen

Million yen

%

Yen

FYE 03/2021

46,644

36,856

77.8

810.66

FYE 03/2020

51,896

38,648

72.8

834.74

(Reference) Equity

FYE

03/2021

36,311 million

yen

FYE 03/2020

37,783 million yen

(3) Consolidated Cash Flows

Net Cash Provided by

Net Cash Provided by

Net Cash Provided by

Cash and Cash

(Used in) Operating

(Used in) Investing

(Used in) Financing

Equivalents

Activities

Activities

Activities

at End of Period

Million yen

Million yen

Million yen

Million yen

FYE 03/2021

5,652

-2,150

-4,983

26,835

FYE 03/2020

8,044

-4,127

-5,036

28,766

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2. Dividends

		Dividend per Share		Total Dividend	Dividend	Dividend to Net
	1st	2nd	3rd	Year End	Full-Year	Amount	Payout Ratio	Asset Ratio
	Quarter-end	Quarter-end	Quarter-end	Total	(Full year)	(Consolidated)	(Consolidated)
	Yen	Yen	Yen	Yen	Yen	Million yen	%	%
FYE 03//2020	-	0.00	-	74.80	74.80	3,565	47.9	9.4
FYE 03/2021	-	0.00	-	37.10	37.10	1,750	47.5	4.5
FYE 03/2022	-	0.00	-	72.50	72.50		-
(projected)

3. FY Ending March 2022 Projected Consolidated Operating Results (From April 1, 2021 to March 31, 2022) (Percentage indicates year on year percentage changes for both full-year and quarterly results.)

	Net Sales	Operating Income	Ordinary Income	Profit Attributable to	EPS
	Owners of Parent
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
2nd Qtr	23,818	15.3	4,122	41.3	4,128	37.8	2,825	82.3	63.08
(cumulative)	51,000	19.4	10,000	28.7	9,999	26.0	6,842	95.4	152.77
full year

*Notes

(1) Change in major subsidiaries during the fiscal year under review (Change in specific subsidiaries that will

accompany a change in scope of consolidation): No	None
Addition (Name):	None	Exclusion (Name)

(2) Changes in accounting policy, changes in accounting estimates, or restatement due to correction

1. 1. Changes in accounting policy accompanying amendment of accounting principles:
   2. Changes in accounting policy other than "a.":
   3. Changes in accounting estimates:
   4. Restatement due to correction:
2. Number of shares issued (common share)

a. Number of shares issued at fiscal year-end (including treasury shares)

FYE 03/2021	49,716,000 shares	FYE 03/2020	49,716,000 shares
b. Number of shares of treasury share at fiscal year-end
FYE 03/2021	4,923,672 shares	FYE 03/2020	4,451,919 shares
c. Average number of shares issued during the period
FYE 03/2021	44,791,225 shares	FYE 03/2020	45,610,589 shares

No

No

No

No

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(Reference) Summary of Non-Consolidated Operating Results
1. FYE 03/2021 Non-Consolidated Earnings (From April 1, 2020 to March 31, 2021)
	(1) Non-Consolidated Operating Results		(Percentages indicate percent change from the prior fiscal year)
		Net Sales		Operating Income	Ordinary Income	Profit
		Million yen	%	Million yen	%	Million yen	%	Million yen	%
	FYE 03/2021	26,919	-28.9		6,792	-30.1	6,763	-30.6	3,082	-52.6
	FYE 03/2020	37,852	3.6		9,716	-4.6	9,748		-7.8	6,503	-12.6
		EPS		Fully Diluted EPS
			Yen			Yen
	FYE 03/2021		68.83			68.62
	FYE 03/2020		142.59			142.16
	(2) Non-Consolidated Financial Position
		Total Assets		Net Assets	Equity Ratio	Net Assets per Share
		Million yen		Million yen			%		Yen
	FYE 03/2021	45,565		36,698		80.2			816.26
	FYE 03/2020	47,625		38,051		79.6			837.25
	(Reference) Equity		FYE 03/2021	36,562 million yen	FYE 03/2020	37,897 million yen

[This Earnings Announcement [under Japanese GAAP] is outside the scope of audits by certified public accountants or an audit corporation.]

[Explanation regarding appropriate use of operating results projections and other special notes] Forward-looking statements including projected operating results contained in this report and supplementary materials are based on information currently available to the Company and on certain assumptions deemed as rational, and are not intended to guarantee achievements by the Company. Actual results may differ significantly from such projections due to various factors.

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Attachments Table of Contents
1.	Overview of Operating Results ......................................................................................................................................................	5
	(1)	Overview of Operating Results for the Current Fiscal Year..................................................................................................	5
	(2)	Overview of Financial Position for the Current Fiscal Year..................................................................................................	6
	(3)	Overview of Cash Flows for the Current Fiscal Year............................................................................................................	7
	(4)	Business Outlook...................................................................................................................................................................	8
	(5)	Material Events Relating to the Going Concern Assumption................................................................................................	8
2.	Basic Approach to the Selection of Accounting Standards ............................................................................................................	8
3.	Consolidated Financial Statements and Key Notes ........................................................................................................................	9
	(1)	Consolidated Balance Sheets.................................................................................................................................................	9
	(2)	Consolidated Statements of Income and Consolidated Statements of Comprehensive Income...........................................	11
	(3)	Consolidated Statements of Changes in Net Assets.............................................................................................................	13
	(4)	Consolidated Statements of Cash Flows..............................................................................................................................	15
	(5)	Notes to the Consolidated Financial Statements..................................................................................................................	17
		(Notes Relating to the Going Concern Assumption) ...........................................................................................................	17
		(Basis of Preparing the Consolidated Financial Statements) ...............................................................................................	17
		(Consolidated Balance Sheets) ............................................................................................................................................	20
		(Consolidated Statements of Income)..................................................................................................................................	20
		(Consolidated Statements of Comprehensive Income)........................................................................................................	22
		(Consolidated Statements of Cash Flows) ...........................................................................................................................	23
		(Segment Information, etc.).................................................................................................................................................	24
		(Per-Share Information).......................................................................................................................................................	26

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1. Overview of Operating Results

1. Overview of Operating Results for the Current Fiscal Year

1) Operating Results for the Fiscal Year ended March 31, 2021

Net sales in the fiscal year ended March 31, 2021, decreased to ¥42,725 million (down 24.8% year on year) as they were significantly affected by declining hiring demand from client companies due to the global spread of COVID-

19. Total costs decreased to ¥34,953 million (down 23.8% year on year) due primarily to a reduction in variable advertising expenses as a result of the smaller number of job openings in addition to a keener focus on keeping outsourcing-related expenses and other costs down.

As a result, the Company recorded operating income of ¥7,771 million (down 29.4% year on year) and ordinary income of ¥7,939 million (down 28.2% year on year). Profit attributable to owners of parent was ¥3,502 million (down 50.9% year on year) due in part to an impairment loss on goodwill related to a consolidated subsidiary, JapanWork, an impairment loss on non-current assets, such as buildings, following our decision to close offices, and a loss on valuation of investment securities of unlisted stocks.

(Unit: Million yen)

	Prior Fiscal Year	Current Fiscal Year	Change	Percent change
	(From April 1, 2019	(From April 1, 2020
	(%)
	to March 31, 2020)	to March 31, 2021)
Net sales	56,848	42,725	-14,123	-24.80%
Operating income	11,005	7,771	-3,233	-29.40%
Ordinary income	11,057	7,939	-3,118	-28.20%
Profit attributable to	7,125	3,502	-3,623	-50.90%
owners of parent

2) Summary of Major Businesses (Managerial accounting basis)

				(Unit: Million yen)
	Prior Fiscal Year	Current Fiscal Year		Percent change
Net sales	(From April 1, 2019	(From April 1, 2020	Change
(%)
	to March 31, 2020)	to March 31, 2021)
Domestic Job Board	32,126	21,774	-10,352	-32.2%%
Domestic Permanent	11,878	9,385	-2,493	-21.0%%
Recruitment
Overseas	10,745	8,011	-2,733	-25.4%%
HR-Tech	475	1,215	+739	+155.7%
Other business/	2,113	2,694	+580	+27.5%
Subsidiaries

The difference between the combined net sales of each business and the consolidated net sales is attributable to the adjustment made among the businesses and consolidated adjustments.

(Domestic Job Board)

The number of postings on job advertisement websites in Japan dropped sharply as the spread of COVID-19 resulted in a decline in recruitment demand and a suspension of hiring. The number of job openings continued to recover at a moderate pace after bottoming out last May during the first half of the previous fiscal year. In the second fiscal half, client companies saw their performance and outlook for their business environments improve, although there were some differences between industries. This resulted in an increased hiring demand in anticipation of the next fiscal year and beyond, which spurred the recovery.

As a result, net sales of Domestic Job Board amounted to ¥21,774 million down 32.2% year on year.

(Domestic Permanent Recruitment)

Domestic Permanent Recruitment was affected by the declining hiring demand due to the spread of COVID-19, but experienced a smaller decrease in overall sales than did job advertisement websites in Japan. The recruitment and hiring rate of young people, or those with potential, is unlikely to return to the pre-COVID level due primarily to the strong demand from corporations looking to employ work-ready personnel. This

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