Nexyz : Consolidated Results for the Second Quarter of the Fiscal Year to September 2023

Consolidated Results for the Second Quarter of the Fiscal Year to September 2023
(Japanese Accounting Standards)
	(English Translation of "Kessan Tanshin")
May 15, 2023	Exchanges Listed: TSE (Prime Market)
Company Name:Nexyz.Group Corporation	Location of Company Headquarters: Tokyo
Securities Code: 4346	（URL https://www.nexyzgroup.jp/）

Position of Representative: President and Representative Director	Name: Takami Kondo
Contact : Executive Managing Director, Administrative Division Manager	Name: Yasuhiro Matsui	Tel.[phone]
					( Amounts truncated to the nearest million yen.)
1. Consolidated results for the Second Quarter of the Fiscal Year to September 2023
(from Oct. 1, 2022 to Mar. 31, 2023)
(1) Consolidated Results of Operations		(Amounts in percentages show a comparison with the previous same period results.)
	Net Sales		Operating Income		Ordinary Income
	Yen Mln	%		Yen Mln	%	Yen Mln	%
March 2023	10,035	14.1		295	―	286	―
March 2022	8,798	―		8	―	2	―
(Note) Comprehensive income	March 2023	310 million yen (―%)	March 2022	△94 million yen (―%)
	Net income attributable to	Earnings per Share		Fully Diluted
	owners of the parent			Earnings per Share
	Yen Mln	%		Yen		Yen
March 2023	207	―		15.92		―
March 2022	△155	―		△11.95		―

(Note) The percentage change of operating Income and ordinary Income from the corresponding period of previous year is not shown for the six months ended March 31, 2023 because the rate of change exceeded 1,000%.

(Note) Diluted net income per share is not presented because there are no dilutive shares for the six months ended March 31, 2023.

(Note)The Group has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29) and related guidance from the beginning of the fiscal year ending September 30, 2022. Accordingly, all figures for the second quarter of the fiscal year ending September 30, 2022 are figures after application of the said standard and guideline, and no year-on-year changes are presented.

(2) Consolidated Financial Position			(Amounts truncated to the nearest million yen.)
	Total Assets	Net Assets Value	Capital Ratio	Net Assets per Share
	Yen Mln		Yen Mln	%	Yen
March 2023	15,002		2,967	7.6	87.60
September 2022	13,615		2,867	8.8	91.82
(Note) Shareholders' equity:	March 2023	1,139 million yen	September 2022	1,194 million yen

2. Consolidated annual dividend

			Annual Dividend Per Share
	End of first	End of secound	End of third	End of Year	Total
	quarter (Yen)	quarter (Yen)	quarter (Yen)	(Yen)	(Yen)
September 2022	―	0.00	―	20.00	20.00
September 2023	―	0.00
September 2023			―	20.00	20.00
(Forecast)

3. Consolidated Forecast for the fiscal year ending September 2023 (October 1, 2022～September 30, 2023)

(Percentages indicate changes from the previous term)

	Net Sales		Operating Income		Ordinary Income
	Yen Mln	%	Yen Mln	%	Yen Mln	%
Full Fiscal Year	19,000	△1.1	700	83.0	700	85.4
	Net income attributable to	Earnings per Share
	owners of the parent
	Yen Mln	%		Yen
Full Fiscal Year	400	115.1		30.75

Note: Revisions to the most recently disclosed dividend forecasts: No

		(Millions of yen)
	As of September 30, 2022	As of March 31, 2023
Assets
Current assets
Cash and deposits	2,831	5,660
Notes and accounts receivable - trade	2,055	2,345
Lease receivables	3,508	2,291
Merchandise	659	693
Accounts receivable - other	679	512
Other	852	611
Allowance for doubtful accounts	△1,011	△1,209
Total current assets	9,574	10,905
Non-current assets
Property, plant and equipment
Buildings, net	1,004	988
Tools, furniture and fixtures, net	94	112
Other, net	7	4
Total property, plant and equipment	1,106	1,106
Intangible assets
Software	68	72
Other	0	11
Total intangible assets	68	84
Investments and other assets
Investment securities	937	954
Leasehold and guarantee deposits	703	631
Deferred tax assets	688	770
Other	1,293	1,516
Allowance for doubtful accounts	△755	△967
Total investments and other assets	2,866	2,905
Total non-current assets	4,041	4,096
Total assets	13,615	15,002

		(Millions of yen)
	As of September 30, 2022	As of March 31, 2023
Liabilities
Current liabilities
Accounts payable - trade	1,839	1,722
Short-term borrowings	2,200	2,200
Current portion of long-term borrowings	2,040	2,043
Accounts payable - other	609	633
Income taxes payable	51	88
Contract cancellation adjustment reserve	1,048	1,204
Provision for bonuses	－	193
Other	984	1,330
Total current liabilities	8,774	9,417
Non-current liabilities
Long-term borrowings	1,673	2,361
Other	300	256
Total non-current liabilities	1,974	2,618
Total liabilities	10,748	12,035
Net assets
Shareholders' equity
Share capital	1,210	100
Capital surplus	20	1,130
Retained earnings	667	614
Treasury shares	△898	△898
Total shareholders' equity	999	946
Accumulated other comprehensive income
Valuation difference on available-for-	193	191
sale securities
Foreign currency translation adjustment	2	1
Total accumulated other comprehensive	195	193
income
Non-controlling interests	1,672	1,827
Total net assets	2,867	2,967
Total liabilities and net assets	13,615	15,002

		(Millions of yen)
	Six months ended	Six months ended
	March 31, 2022	March 31, 2023
Net sales	8,798	10,035
Cost of sales	4,750	4,592
Gross profit	4,047	5,443
Selling, general and administrative expenses	4,039	5,148
Operating profit	8	295
Non-operating income
Receipt benefit	－	2
Administrative service fee income	10	－
Income on support of operating	－	1
Other	10	10
Total non-operating income	21	14
Non-operating expenses
Interest expenses	13	14
Provision of allowance for doubtful accounts	－	5
Commission expenses	7	0
Other	5	3
Total non-operating expenses	26	23
Ordinary profit	2	286
Extraordinary income
Gain on sale of investment securities	－	9
Gain on reversal of share acquisition rights	4	－
Total extraordinary income	4	9
Extraordinary losses
Loss on valuation of investment securities	0	0
Total extraordinary losses	0	0
Profit before income taxes	6	295
Income taxes - current	16	189
Income taxes - refund	－	△119
Income taxes - deferred	86	△85
Total income taxes	102	△16
Profit (loss)	△96	312
Profit attributable to non-controlling	58	105
interests
Profit (loss) attributable to owners of parent	△155	207

		(Millions of yen)
	Six months ended	Six months ended
	March 31, 2022	March 31, 2023
Profit (loss)	△96	312
Other comprehensive income
Valuation difference on available-for-sale	1	△1
securities
Foreign currency translation adjustment	1	△0
Total other comprehensive income	2	△2
Comprehensive income	△94	310
Comprehensive income attributable to
Comprehensive income attributable to owners	△153	205
of parent
Comprehensive income attributable to non-	59	105
controlling interests