Summary of Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending June 30, 2022 [IFRS]

(Percentages calculated on year-on-yearbasis.)

Summary of Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending June 30, 2022 [IFRS]

	November 11, 2021
Listed Company:	MACROMILL, INC.
Stock Exchange:	Tokyo Stock Exchange
Code Number:	3978
URL:	https://www.macromill.com
Representative:	Toru Sasaki, Representative Executive Officer, Global CEO
Contact:	Ryo Takahashi, Vice President, Corporate Communication & IR Division
Tel.:	[phone]
Scheduled date to submit quarterly report:	November 12, 2021
Scheduled date of the start of dividends payment:	-
Supplementary material for quarterly financial results:	Yes
Briefing on quarterly financial results:	Yes (for analysts and institutional investors)
	(Amounts of less than one million yen are rounded off.)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending June 30, 2022 (from July 1, 2021 to September 30, 2021)

(1) Consolidated Business Performance

		Revenue		Operating profit	Profit before tax	Profit for the period
	Million yen		%	Million yen		%	Million yen	%	Million yen		%
First quarter of the year	10,890		19.7	1,131		65.8	1,056	88.4	654		101.1
ending June 30, 2022
First quarter of the year	9,097		(7.9)	682		(43.7)	560	(49.2)	325		(56.8)
ended June 30, 2021
	Profit attributable to owners	Total comprehensive	Basic earnings per share	Diluted basic earnings per
		of the parent	income for the period		share
	Million yen		%	Million yen		%		Yen				Yen
First quarter of the year	518		119.7	634		220.1		13.14			13.05
ending June 30, 2022
First quarter of the year	235		(67.4)	198		(67.1)		5.85			5.81
ended June 30, 2021
(Reference)
		EBITDA		EBITDA margin
	Million yen		%			%
First quarter of the year	1,823		28.4			16.7
ending June 30, 2022
First quarter of the year	1,420		(24.8)			15.6
ended June 30, 2021
(2) Consolidated Financial Position
		Total assets		Total equity			Equity attributable to owners	Ratio of equity attributable to
					of the parent	owners of the parent
				Million yen			Million yen		Million yen			%
As of September 30, 2021				77,074			32,660		29,242			37.9
As of June 30, 2021				84,041			32,933		29,236			34.8
2. Dividends
								Dividend per share
		End of 1st quarter	End of 2nd quarter		End of 3rd quarter	Year end			Annual
				Yen		Yen		Yen		Yen			Yen
Year ended June 30, 2021				-	0.00			-	13.00		13.00
Year ending June 30, 2022				-
Year ending June 30, 2022					8.00			-		8.00		16.00
(forecast)
(Note) Revisions from dividends forecasts announced most recently: No

3. Forecast of Consolidated Financial Results for the Year Ending June 30, 2022 (from July 1, 2021 to June 30, 2022)

(Percentages calculated on year-on-year basis.)

	Revenue			Operating profit	Profit before tax	Profit for the year	Profit attributable to	Basic earnings per
			owners of the parent	share
	Million yen		%		Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	47,400		9.8		5,100	(4.9)	4,700	(3.8)	3,200	(8.4)	2,700	(4.3)	68.47
(Note) Revisions from financial results forecasts announced most recently: No
(Reference)
	EBITDA			EBITDA margin
	Million yen		%			%
Full year	7,900		(9.0)			16.7

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• Notes
• 1. Changes in significant subsidiaries during the period (changes in specific subsidiaries accompanied by a change in the scope of

consolidation):No New: - Exclusion: -

(2) Changes in accounting policies and changes of accounting assumptions
(i)	Changes in accounting policies as required by IFRS:	No
(ii)	Changes in accounting policies other than (i):	No
(iii) Changes in accounting assumptions:	No

1. Number of shares outstanding (common stock)
2. 1. Number of shares issued (including treasury stock) at the end of the term:

As of September 30, 2021	40,380,500 shares	As of June 30, 2021	40,380,500	shares
(ii) Number of shares of treasury stock at the end of the term:
As of September 30, 2021	928,135 shares	As of June 30, 2021	841,835	shares
(iii) Average number of shares during the period:
Three months ended September 30, 2021	39,459,167 shares	Three months ended September 30, 2020	40,320,165	shares

• Summaries of quarterly consolidated financial statements are not subject to audits conducted by certified public accountants or audit firms.
• Note regarding proper use of results forecasts and other special comments

1. The Company has decided to conduct a share buyback program at the Board of Directors meeting held on May 13, 2021. This transaction based on the above resolution of the board of Directors has completed on July 8, 2021. Regarding this transaction of the share buyback program, refer to the "Notice Regarding the Status of Share Buyback Program and its Completion" disclosed on July 9, 2021. Note that "Basic earnings per share" in the Forecast of Consolidated Financial Results include the impact of the share buyback program up to July 8, 2021.
2. The Group applies the International Financial Reporting Standards (hereinafter "IFRS") to and after the fiscal year ended June 30, 2016.
3. The forward-looking statements, such as results forecasts, included in this document are based on information available to the management as of the date of the document and certain assumptions that the management considers reasonable. The Company does not promise that the forecasts will be achieved. Actual results may differ significantly due to a range of factors.
4. EBITDA = operating profit + depreciation and amortization + loss on retirement of non-current assets + impairment loss
5. EBITDA margin = EBITDA / revenue
6. EBITDA and EBITDA margin are not the indicators specified by IFRS, but are the financial indicators that the Group considers useful for investors to evaluate the business results of the Group.
7. EBITDA and EBITDA margin should not be considered as indicators to replace the other indicators shown in accordance with IFRS because they do not include some of the items that affect the profit for the year, so they are subject to significant restrictions as a means of analysis. EBITDA and EBITDA margin disclosed by the Group may be less useful in comparison with the same or similar indicators of other competitors because they are calculated according to a different method from that of such other companies.

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Accompanying Materials - Contents
1. Qualitative Information about Consolidated Financial Results for the Quarter ..................................................................................	4
(1)	Overview of operating results for the first quarter..................................................................................................................	4
(2)	Explanations about financial position.....................................................................................................................................	7
(3)	Explanations about forward-looking information including forecast of consolidated financial results ..................................	7

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1. Qualitative Information about Consolidated Financial Results for the Quarter

1. Overview of operating results for the first quarter
   (i) Explanation of the operating environment
   During the first quarter (July 1, 2021, to September 30, 2021), there were changes that reduced the impact of the Covid-19 pandemic on the global economy, including rises in the Covid-19 vaccination rate in some countries and regions. Japan's economy was affected by a re-declaration of a state of emergency in regions where Covid-19 cases were rising as a result of the resurgence of the disease, but there were signs of a recovery in corporate activities.

Looking specifically at the marketing research sector, the total global marketplace reached an estimated value of $81.2 billion, with online marketing research accounting for $52.5 billion (*1). In Japan, the size of the overall marketing research sector was 220.2 billion yen, with online marketing research valued at 80.7 billion yen (*2). Although the global market and the Japanese market were both adversely affected by the Covid-19 pandemic for a period of time, we believe that the marketing research sector has returned to a steady growth trend for the medium- to long-term as marketing research shifts even further online amid the pandemic.

In this economic and market environment, the Group disclosed in August 2021 a new MTP (Mid-term Business Plan) for the three years to the fiscal year ending June 30, 2024. The Group has developed strategies to achieve the Plan's targets and is striving to expand the business scale and profit. Before the formulation of the new MTP, the Group changed its management vision in view of changes in the future business environment. The new vision is "Build your Data Culture - We aspire to be the driving force in helping our clients build data cultures by utilizing our data-native approach to solve today's marketing challenges and support business success".

Under this vision, the Company is working to transform its business model into that of a "Professional Marketing Services Company" that not only solves the research challenges of client companies, but also provides better support for overall marketing issues from upstream, particularly in its Japanese operations. The Company will continue to offer innovative services based on varied data obtained from the consumer panel that it has originally created, with the goal of sharing these innovations across the marketing business industry.

(ii) Explanation of the operating results

Consolidated financial results	Three months	Three months
ended September	ended September	Increase/decrease	Change %
(Million yen unless otherwise indicated)
30, 2020	30, 2021
Revenue	9,097	10,890	+1,793	+19.7%
Japan and Korea Business	7,220	8,149	+929	+12.9%
Overseas (ex-Korea) Business	1,909	2,781	+872	+45.7%
EBITDA	1,420	1,823	+402	+28.4%
Operating profit	682	1,131	+449	+65.8%
Profit before tax	560	1,056	+495	+88.4%
Profit attributable to owners of the parent	235	518	+282	+119.7%

During the first quarter, revenue amounted to 10,890 million yen (up 19.7% year-on-year) as both the Japan and Korea Business and the Overseas Business (ex-Korea) segments recorded double-digit growth, reflecting a reduction in the impact of Covid-19 and expansion in demand for our marketing services from clients. (For an overview of results by segment, refer to "(iii) Explanation of operating results by segment" in the following section).

On the expense front, the Group is actively recruiting people to expand research capacity to fulfil orders for research projects as revenue

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is experiencing an increasing trend. The Group is also actively recruiting people for the new businesses that it has begun to focus on, including the data utilization support (data consulting) business and the marketing measures support (ad distribution, etc.) business. In addition, to supplement insufficient internal capacity, the Group is taking steps to meet expanding demand from clients through initiatives including building a structure for receiving orders by using external capacity through outsourcing. For those reasons, total employee expenses increased significantly year-on-year in the first quarter , just as they had in the preceding fourth quarter. Outsourcing expenses also rose. As a result, operating expenses climbed year-on-year.

Consequently, the Group recorded earnings before interest, taxes, depreciation and amortization (EBITDA) (*3) of 1,823 million yen (up 28.4% year-on-year). Due to the increase in revenue, operating profit, profit before tax, and profit attributable to owners of the parent all increased significantly from the year-ago level to 1,131 million yen (up 65.8% year-on-year), 1,056 million yen (up 88.4% year-on- year), and 518 million yen (up 119.7% year-on-year), respectively.

Return on equity (ROE calculated using the data for the preceding 12 months) stood at 11.0% (up 20.1 percentage points year-on-year, or up 2.5 percentage points year-on-year excluding the goodwill impairment loss recorded in the fourth quarter of the fiscal year ended June 30, 2020). The interest coverage ratio (*4: calculated in the last 12 months) resulted in 14.7 times (compared with -0.3 times in the same period of the previous fiscal year, and if the impairment loss of goodwill posted in the fourth quarter of the fiscal year ended June 30, 2020 was excluded, it would have amounted to 13.5 times).

(iii) Explanation of operating results by segment

The overview of operating results by segment of the Group is as follows:

Consolidated financial results by segment	Three months	Three months
ended September	ended September	Increase/decrease	Change %
(Million yen unless otherwise indicated)
30, 2020	30, 2021
Revenue	9,097	10,890	+1,793	+19.7%
Japan and Korea Business	7,220	8,149	+929	+12.9%
Overseas (ex-Korea) Business	1,909	2,781	+872	+45.7%
Segment EBITDA	1,420	1,823	+402	+28.4%
Japan and Korea Business	1,368	1,438	+70	+5.1%
Overseas (ex-Korea) Business	52	384	+332	+636.4%
Segment profit or loss	682	1,131	+449	+65.8%
Japan and Korea Business
806	939	+132	+16.5%
Overseas (ex-Korea) Business	(124)	191	+316	-

(Japan and Korea Business)

In Japan, despite the impact of the Covid-19 pandemic, demand for marketing research from client companies was on an expanding trend as economic activities gradually resumed. During the first quarter, the Group suspended the operation of a part of its offline research services in response to the re-declaration of a state of emergency. Consequently, revenue in offline research remained sluggish. However, revenue from online research and digital and other new business fields grew strongly. As a result, revenue in the first quarter grew double digits year-on-year.

In Korea, a movement to substitute offline research with online research accelerated following the pandemic. The Group, which excels in online research, maximized this business opportunity and continued to grow revenue from online research. Sales activities in the

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