PCA : Summary of Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2023 (J-GAAP)（497KB） 新しいウィンドウを開く

Summary of Consolidated Financial Results for the Second Quarter

of the Fiscal Year Ending March 31, 2023 (J-GAAP)

English translation of the original Japanese document. In case there is any inconsistency between the translation and the original, the latter shall prevail.

			October 24, 2022
Company name:	PCA Corporation	Stock exchange where listed: Tokyo
Securities code:	9629	URL: https://pca.jp/
Representative:	Fumiaki Sato, President and CEO
Contact:	Yoshiyuki Sakashita, General Manager, Finance and Accounting Division	TEL: [phone]
Scheduled date for filing of quarterly report:	November 10, 2022
Scheduled date for commencement of dividend payment:	―
Supplementary materials prepared for quarterly financial results:	No
Briefing session held for quarterly financial results:	Yes (streaming of financial results briefing video planned)

(Amounts have been rounded down to the nearest million yen)

1. Consolidated Results for the First Half of the Fiscal Year Ending March 31, 2023 (April 1, 2022, to September 30, 2022)

(1) Consolidated Operating Results (cumulative)

(%: change from the same quarter of the previous fiscal year)

	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
	Million yen		%	Million yen	%	Million yen	%	Million yen	%
First Half, FY2023	6,163		(6.7)	847	(51.7)	871	(51.1)	494	(65.9)
First Half, FY2022	6,609		10.5	1,753	86.8	1,782	85.7	1,449	145.9

(Note) Comprehensive income:	First Half, FY2023	576 million yen (-35.5%)
	First Half, FY2022	894 million yen (-2.4%)
Earnings per share	Diluted earnings per share
	Yen		Yen
First Half, FY2023	24.73		24.61
First Half, FY2022	72.48		72.36

(Note) The Company conducted a three-for-one stock split of its common stock on October 1, 2021 (effective date). "Earnings per share" for the first half of FY2022 has been calculated under the assumption that this stock split had been conducted at the beginning of FY2022.

(2) Consolidated Financial Position

	Total assets	Net assets	Equity ratio	Net assets per share
	Million yen	Million yen	%	Yen
As of September 30, 2022	28,539	17,374	59.6	850.85
As of March 31, 2022	28,381	17,281	59.7	847.14

(Reference) Shareholders' equity:	As of September 30, 2022	17,016 million yen
			As of March 31, 2022	16,941 million yen
2. Dividends
			Annual dividends per share
		End of Q1	End of Q2		End of Q3		End of Q4	Annual
		Yen	Yen		Yen		Yen	Yen
FY2022		－	0.00		－		24.00	24.00
FY2023		－	0.00
FY2023 (forecast)				－		13.00	13.00
(Note)	Breakdown of year-end dividend in	FY2022: ordinary dividend of 13.00 yen plus commemorative dividend of 11.00 yen
	Revisions since the most recently published dividend forecast: None

3. Forecasted Consolidated Results for the Fiscal Year Ending March 31, 2023 (April 1, 2022, to March 31, 2023)

(%: change from the previous fiscal year)

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
							owners of parent
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	12,927	(3.4)	1,100	(58.6)	1,132	(58.0)	639	(73.0)	31.95

(Note) Revisions since the most recently published forecast of business results: None

• Notes

1. Changes in significant subsidiaries during the first half of this fiscal year (changes in specified subsidiaries resulting in changes in the scope of consolidation): None

New:

(Company name:

)

Excluded:

(Company name:

)

1. Application of special accounting procedures in the preparation of the quarterly consolidated financial statements: Yes
2. Changes in accounting policy, changes in accounting estimates, and restatements

1)	Changes in accounting policy due to the revision of accounting standards and related items:	None
2)	Changes in accounting policy other than 1) above:	None
3)	Changes in accounting estimates:	None
4)	Restatements:	None

(4) Number of outstanding shares (common stock)

1. Number of outstanding shares at the end of the period (including treasury shares) As of September 30, 2022: 23,100,000 shares

As of March 31, 2022:

23,100,000 shares

1. Number of treasury shares at the end of the period As of September 30, 2022: 3,100,962 shares

As of March 31, 2022: 3,100,962 shares

3) Average number of shares during the period (cumulative)

First Half, FY2023:	19,999,038 shares
First Half, FY2022:	19,999,038 shares

(Note) The Company conducted a three-for-one stock split of its common stock on October 1, 2021 (effective date). "Average number of shares during the period" for the first half of FY2022 has been calculated under the assumption that this stock split had been conducted at the beginning of FY2022.

• Summaries of quarterly financial results are not subject to quarterly review by certified public accountants or auditing firms.
• Information regarding the appropriate use of forecasted results and other information to note:

This report contains forward-looking statements that are based on information currently available to the Company and assumptions that have been deemed to be reasonable by the Company. Actual results may differ from the forecasts due to factors including various uncertainties inherent to the forecasts and future changes in the internal/external conditions that affect business operations. For cautionary notes and other information related to the use of forecasted results, please refer to page 3 of the attached documents.

PCA Corporation (9629): Summary of Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2023

Table of Contents of the Attached Documents

1. Qualitative Information Pertaining to Financial Results for the First Half of the Fiscal Year Ending March 31, 2023 ……	2
(1)	Information on Operating Results ………………………………………………………………………………………	2
(2)	Information on Financial Conditions ……………………………………………………………………………………	3
(3)	Information on Forecasts of Consolidated Business Results and Other Predictions ……………………………………	3
2. Quarterly Consolidated Financial Statements and Important Notes ………………………………………………………	4
(1)	Quarterly Consolidated Balance Sheets …………………………………………………………………………………	4
(2)	Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income………	6
	Quarterly Consolidated Statement of Income
	First Half, Consolidated …………………………………………………………………………………………	6
	Quarterly Consolidated Statement of Comprehensive Income
	First Half, Consolidated …………………………………………………………………………………………	7
(3)	Notes Regarding Quarterly Consolidated Financial Statements………………………………………………………	8
	(Notes Regarding Going Concern Assumption) ………………………………………………………………………	8
	(Notes Regarding Any Significant Changes in the Amount of Shareholders' Equity) ………………………………	8
	(Specific Accounting Treatments Used in the Preparation of the Quarterly Consolidated Financial Statements) ……	8

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PCA Corporation (9629): Summary of Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2023

1. Qualitative Information Pertaining to Financial Results for the First Half of the Fiscal Year Ending March 31, 2023

(1) Information on Operating Results

Regarding Japan's economic situation during the first half of the fiscal year ending March 31, 2023, while the COVID-19 outbreak remains unforeseeable with regards to when it will settle down, activity restrictions have become relaxed with the rising vaccination rate and economic activities have started to be resumed while being balanced with infection risk reduction. There have also been concerns such as the impact of economic sanctions by countries around the world against the prolonged Russian invasion of Ukraine. With the rising cost of raw materials and fuel, the depreciating yen, and more, the future situation remains difficult to predict.

To prevent the spread of COVID-19, we will continue to conduct business activities in compliance with the policies of the national and local governments, specifically by strictly adhering to the "PCA-Style" (avoiding closed spaces, crowded places, and close contact, as well as disinfecting, checking body temperature, and conducting thorough management of contact tracing).

The following are our basic policies for preventing the spread of COVID-19:

・Give top priority to protecting the lives and health of our customers, our partners, and our employees and their families ・Prevent the spread of infection

・As much as possible, continue to provide the services needed by our customers

Under these policies, we will continue to shift to the new normal at all our offices, encourage remote work as the preferable way of working, and conduct business activities in compliance with the policies of the national and local governments.

Due to COVID-19,work-from-home and remote work have become encouraged in the society. There has been greater demand for more diversified work styles that emphasize work-life balance, help prepare against threats to business continuity, and help contribute to securing human resources and improving productivity. Work styles are indeed undergoing significant changes. The PCA Group will provide products and services to help our customers improve business operations in remote-work,work-from-home, and staggered- working-hour environments. With our sales partners, we will continue to develop services with a focus on cloud-based and solution- based services.

The number of corporate users of the PCA Cloud series has been increasing steadily from 12,070 corporate users as of the end of March 2019 to 14,327 corporate users as of the end of March 2020, 16,444 corporate users as of the end of March 2021, and 19,152 corporate users as of the end of March 2022. In PCA Cloud, users can use PCA's software with no initial cost and without having to manage their in-house servers. Users can also now select PCA Cloud on AWS, a new service that we have started, which provides a maximum of 72 client access licenses (CAL) for simultaneous usage and can be used 24 hours a day and 365 days a year, excluding maintenance hours such as those for service updates. The service is aimed at further improving the usability of the cloud service.

Furthermore, we have also added PCA Hub eDOC to our service lineup as an online storage service which can be linked with enterprise systems to help companies adapt to the Electronic Books Maintenance Act and various, diverse work styles.

We will also release PCA Hub products for the distribution of pay slips and delivery of invoices and payment statements in spring 2023 and continue to expand our service lineup.

We also believe that there will be increasing demand for our subsidiary's cloud service for attendance management as one way for companies to implement the work-stylereform. We expect that this service will continue to contribute to our business results.

In addition to these circumstances, we saw a decline in the replacement demand for the PCA X series, whose support had ended in December 2021. As a result, the PCA Group's financial results for the first half of this fiscal year were as follows: net sales of 6,163 million yen (-6.7% YOY), operating profit of 847 million yen (-51.7% YOY), ordinary profit of 871 million yen (-51.1% YOY), and profit attributable to owners of parent of 494 million yen (-65.9% YOY).

The PCA Group only has one business segment. Therefore, instead of net sales by segment, we have disclosed net sales by sales category.

Net Sales by Category

Category	Net sales (million yen)	Percent of total (%)	YOY change (%)
Products (conventional software)	557	9.0	(67.6)
Merchandise (ledger sheets, etc.)	222	3.6	33.4
Maintenance service	1,688	27.4	2.5
Cloud service	2,860	46.4	10.2
Other operating revenue	834	13.5	73.2
Total	6,163	100.0	(6.7)
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PCA Corporation (9629): Summary of Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2023

Previously, when calculating the total sales of each sales category, the amount pertaining to internal transactions had been allocated to each category based on certain assumptions. However, due to the renovation of our system during this fiscal year, we can now extract the specific sales related to internal transactions for each sales category. We have consequently revised our method of adjusting for internal transactions on a consolidated basis so that the sales of each category can be more appropriately represented in the consolidated results. Our method of calculation for the sales of each sales category has therefore been changed starting in the first quarter of this fiscal year.

As a result, compared to before the implementation of this change, consolidated sales for the first half of this fiscal year have been decreased by 1 million yen for merchandise, 17 million yen for maintenance service, 9 million yen for products, and 0 million yen for cloud service, while they were increased by 9 million yen for other operating revenue.

Note that the YOY changes (%) have been calculated based on the comparison with the sales of each category for the first half of the previous fiscal year before the change.

(2) Information on Financial Conditions

There are no items to report regarding changes during the first half of this fiscal year that may have a significant impact on the consolidated financial conditions of the PCA Group.

(3) Information on Forecasts of Consolidated Business Results and Other Predictions

No change has been made to the full-year forecast of consolidated business results for the fiscal year ending March 31, 2023, since its announcement in the "Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2022" published on April 27, 2022. If we decide in the future that revisions of the full-year forecast of consolidated business results are necessary upon considering our progress with business performance and other factors, we will promptly disclose the revisions.

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