Consolidated Financial Results
for the Six Months Ended March 31, 2022
[Japanese GAAP]
May 13, 2022
Company name: Gakken Holdings Co., Ltd.
Stock exchange listing: Tokyo Stock Exchange
Securities code: 9470
URL: https://www.gakken.co.jp/
Representative: Hiroaki Miyahara, President, Representative Director
Contact: Takashi Sawada, General Manager of Financial Strategy Office
Phone: +81-3-6431-1050
Scheduled date of filing quarterly securities report: May 13, 2022
Scheduled date of commencing dividend payments: June 24, 2022
Availability of supplementary briefing material on quarterly financial results: None
Schedule of quarterly financial results briefing session: Scheduled (for institutional investors and analysts)
(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months Ended March 31, 2022 (October 1, 2021 to March 31, 2022)
(1) Consolidated Operating Results | (% indicates changes from the previous corresponding period.) | ||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||
owners of parent | |||||||||||
Six months ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||
March 31, 2022 | 79,632 | 2.0 | 4,325 | (13.0) | 4,388 | (9.1) | 2,546 | 8.6 | |||
March 31, 2021 | 78,077 | 3.0 | 4,970 | 15.8 | 4,826 | 13.5 | 2,344 | (1.4) | |||
(Note) Comprehensive income: Six months ended March 31, 2022: ¥2,235 million [(20.8)%] | |||||||||||
Six months ended March 31, 2021: ¥2,821 million [47.9%] | |||||||||||
Profit per share | Diluted profit per share | ||||||||||
Six months ended | Yen | Yen | |||||||||
March 31, 2022 | 58.39 | 57.84 | |||||||||
March 31, 2021 | 61.65 | 60.96 | |||||||||
(2) Consolidated Financial Position | |||||||||||
Total assets | Net assets | Equity ratio | |||||||||
Million yen | Million yen | % | |||||||||
As of March 31, 2022 | 129,429 | 49,364 | 37.8 | ||||||||
As of September 30, 2021 | 116,900 | 47,413 | 40.2 |
(Reference) Equity: As of March 31, 2022: ¥48,932 million As of September 30, 2021: ¥46,961 million
2. Dividends
Annual dividends | ||||||
1st quarter-end | 2nd quarter-end | 3rd quarter-end | Year-end | Total | ||
Fiscal year ended | Yen | Yen | Yen | Yen | Yen | |
- | 11.00 | - | 11.00 | 22.00 | ||
September 30, 2021 | ||||||
Fiscal year ending | - | 12.00 | ||||
September 30, 2022 | ||||||
Fiscal year ending | - | 12.00 | 24.00 | |||
September 30, 2022 (Forecast) | ||||||
(Note) Revision of dividends | forecast since the | last announcement: | None |
3. Consolidated Financial Results Forecast for the Fiscal Year Ending September 30, 2022 (October 1, 2021, to September 30, 2022) (% indicates changes from the previous corresponding period.)
Net sales | Operating profit | Ordinary profit | Profit attributable to | Profit per share | |||||||
owners of parent | |||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |||
Full year | 157,000 | 4.5 | 6,700 | 7.4 | 6,800 | 11.0 | 3,400 | 29.9 | 77.96 | ||
(Note) Revision of | financial results | forecast | since the last | announcement: None |
* Notes:
- Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in the scope of consolidation): No
Newly added: - (Name) - | Excluded: - (Name) - |
- Application of special accounting treatments in preparing quarterly consolidated financial statements: Yes
- 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: No
- Changes in accounting estimates: No
- Retrospective restatement: No
- Total number of issued shares (common stock)
- Total number of issued shares at the end of the period (including treasury shares):
March 31, 2022: 44,633,232 shares
September 30, 2021: 44,633,232 shares
-
Total number of treasury shares at the end of the period: March 31, 2022: 882,459 shares
September 30, 2021: 1,113,082 shares - The average number of shares during the period:
Six months ended March 31, 2022: 43,610,997 shares
Six months ended March 31, 2021: 38,026,627 shares
The Company has a trust-type employee shareholding incentive plan in place. The total number of treasury shares at the end of the period includes the number of the Company's shares held under this plan by The Nomura Trust & Banking Co., Ltd. (the dedicated trust account for Gakken Employees' Shareholding Association): 242,200 shares at the end of the six months ended March 31, 2022; and 375,600 shares at the end of the fiscal year ended September 30, 2021. The average number of shares during the period is calculated with the number of treasury shares deducted; the number of treasury shares deducted includes the number of the Company's shares held under the same plan by The Nomura Trust & Banking Co., Ltd. (the dedicated trust account for Gakken Employees' Shareholding Association): 314,314 shares at the end of the six months ended March 31, 2022; and 485,686 shares at the end of the six months ended March 31, 2021.
- These quarterly consolidated financial results are outside the scope of quarterly review by certified public accountants or an audit firm.
- Explanation of the proper use of financial results forecast and other notes
(Note on forward-looking statements, etc.)
Financial performance forecasts and other forward-looking statements herein are based on information currently available to the
Company and certain assumptions it deems rational. The actual results may vary significantly due to various factors. With regard to the assumptions for the performance forecasts and the notes on the use of the performance forecasts, please refer to "1. Qualitative Information on Financial Results for the Period under Review, (3) Consolidated Financial Results Forecast and Other Forward-looking Statements" on page 9 of the Attachments.
Table of Contents - Attachments | ||
1. Qualitative Information on Financial Results for the Period under Review .................................................................... | 2 | |
(1) | Explanation of Business Results .................................................................................................................................. | 2 |
(2) | Explanation of Financial Position ................................................................................................................................ | 8 |
(3) | Consolidated Financial Results Forecast and Other Forward-looking Statements ...................................................... | 9 |
2. Quarterly Consolidated Financial Statements and Primary Notes ................................................................................. | 10 | |
(1) | Quarterly Consolidated Balance Sheets ..................................................................................................................... | 10 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income ............................................................. | 12 |
(3) | Quarterly Consolidated Statements of Cash Flows .................................................................................................... | 14 |
(4) | Notes to the Quarterly Consolidated Financial Statements ........................................................................................ | 16 |
(Notes on Going Concern Assumption) ........................................................................................................................ | 16 | |
(Notes When There is Significant Changes in Amounts of Equity) .............................................................................. | 16 | |
(Application of Special Accounting Treatments in Preparing Quarterly Consolidated Financial Statements) ............. | 16 | |
(Changes in Accounting Policies) ................................................................................................................................. | 16 | |
(Segment Information, etc.) .......................................................................................................................................... | 18 | |
(Significant Subsequent Events) ................................................................................................................................... | 19 |
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1. Qualitative Information on Financial Results for the Period under Review
(1) Explanation of Business Results
In the educational domain where Gakken Group (the "Group") conducts its business, the rapid spread of the COVID-19 Omicron variant infections among toddlers and children had a major impact on the field of education. Demand for in-person services took a temporary hit from the outbreak, but demand for education's digitalization continued to increase further.
In the learning center market, as learning becomes more diverse under the influence of the Omicron variant outbreak, systems allowing people to choose between in-person or online learning are gaining favor. Further, individually optimized learning tailored to each student is expanding through the delivery of AI-based learning plans and materials.
In the publishing industry, while the magazine market remains sluggish, the market as a whole has expanded for three consecutive years. This is mainly because e-book publishing grew substantially and sales in paper publications increased for the first time in fifteen years thanks to strong sales of children's books and books to gain qualifications. On the other hand, as the price of printing papers is rising due to soaring raw material prices and an increase in costs for environmental measures, distribution reform initiatives across industries are progressing in response to longstanding challenges of the industry such as reduction of rates of returned goods unsold and logistics costs. Global media-mix initiatives for intellectual property (IP) are also spreading worldwide not only for publishing, but also for such diverse media as movies, animation, and video games.
In the school education industry, the GIGA (Global and Innovation Gateway for All) School Program that aims to develop the educational ICT environment has been expedited. While the distribution of learning devices to every elementary school and junior high school student has been completed and the introduction of digital learning materials is progressing, on the other hand, information security and network measures and the lack of ICT skills of teachers are issues to be addressed.
In the adult education industry, the recurrent education and e-learning markets are growing.
In the healthcare and nursing domain, in order to improve the treatment of workers who support elderly care and child-care services at the front line, initiatives have been taken including those that improve their compensation level and reduce turnover rates as well as those of corporate-led promotions of employment.
In the elderly care business, needs for elderly care are increasing in association with the "2025 issue" (Japan's baby boomer generation will reach the late elderly age (75 years old or older) in 2025) and the growing population of the elderly with dementia. In this context, the Ministry of Health, Labour and Welfare is promoting the building of systems that provide comprehensive support and services to communities (Community-based Integrated Care System) that enable people to continue to live their lives in the communities that are familiar to them until the end of life. The role of ICT is becoming increasingly vital in addressing issues such as reducing workers' burden in operations as well as preventing and early detecting dementia, lifestyle diseases and other health issues.
In the child-care industry, the demand for child-care services is increasing due to the increase in households in which both parents work. The number of students admitted to nursery schools increased due to national measures to support child raising, such as the New Child-rearing Security Plan and the provision of free preschool education and child-care. This resulted in a decrease in the number of children on waiting lists for nursery schools. Although the spread of the Omicron variant infections led parents to refrain from using nursery schools, the need for nursery schools remains high in major cities. The shortage of after-school children's clubs still continues, and many companies from a wide variety of industries are entering the business.
Elderly care and child-care facilities are required more to ensure the safety of residents, children, parents and employees, as well as thorough measures to prevent the spread of COVID-19, including providing hygiene products.
Under such market conditions in the second quarter of the fiscal year ending September 30, 2022, although the field of education was significantly impacted by the spread of the Omicron variant infections, new facility
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GAKKEN Holdings Co. Ltd. published this content on 03 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 June 2022 06:21:12 UTC.