PCA : Summary of Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending March 31, 2023 (J-GAAP)（336KB） 新しいウィンドウを開く

Summary of Consolidated Financial Results for the Third Quarter

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

			January 30, 2023
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:	February 10, 2023
Scheduled date for commencement of dividend payment:	―
Supplementary materials prepared for quarterly financial results:	No
Briefing session held for quarterly financial results:	No

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

1. Consolidated Results for the First Nine Months of the Fiscal Year Ending March 31, 2023 (April 1, 2022, to December 31, 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 Nine Months, FY2023	9,533		(6.0)	1,340	(47.7)	1,372	(47.2)	824	(63.6)
First Nine Months, FY2022	10,144		7.8	2,563	68.2	2,599	67.2	2,268	115.0

(Note) Comprehensive income	First Nine Months, FY2023	878 million yen (-26.6%)
	First Nine Months, FY2022	1,197 million yen (-22.2%)
	Earnings per share	Diluted earnings per share
	Yen		Yen
First Nine Months, FY2023	41.22		41.01
First Nine Months, FY2022	113.41		113.10

(Note) The Company conducted a three-for-one stock split of its common stock on October 1, 2021 (effective date). "Earnings per share" and "Diluted earnings per share" for the first nine months of FY2022 have been calculated under the assumption that this stock split was 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 December 31, 2022	29,149	17,682	59.4	865.26
As of March 31, 2022	28,381	17,281	59.7	847.14

(Reference) Shareholders' equity	As of December 31, 2022	17,304 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)						17.00	17.00
(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	13,008		(2.8)	1,391	(47.6)	1,426	(47.1)	808	(65.8)	40.45

(Note) Revisions since the most recently published forecast of business results: Yes

Regarding the revisions of business result forecast,please see the "Notice Regarding Revisions of Financial Forecast" released today (January 30, 2023).

• Notes

1. Changes in significant subsidiaries during the first nine months 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 December 31, 2022:	22,000,000 shares
	As of March 31, 2022:	23,100,000 shares
2)	Number of treasury shares at the end of the period
	As of December 31, 2022:	2,001,009 shares
	As of March 31, 2022:	3,100,962 shares
3)	Average number of shares during the period (cumulative)
	First Nine Months, FY2023:	19,999,033 shares
	First Nine Months, 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 nine months of FY2022 has been calculated under the assumption that this stock split was 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 see page 3 of the attached documents.

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

Table of Contents of the Attached Documents

1. Qualitative Information Pertaining to the Financial Results for the First Nine Months of the	2
	Fiscal Year Ending March 31, 2023 ……………………………………………………………………………………
(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 Nine Months, Consolidated …………………………………………………………………………………	6
	Quarterly Consolidated Statement of Comprehensive Income
	First Nine Months, 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 Third Quarter of the Fiscal Year Ending March 31, 2023

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

(1) Information on Operating Results

Regarding Japan's economic situation during the first nine months of the fiscal year ending March 31, 2023, while the impact of COVID-19 has remained, daily lives and economic activities have showed signs of returning to normal with the relaxation of activity restrictions. However, with the prolonged war in Ukraine and prices continuing to rise, among other factors, the situation remains difficult to predict.

Regarding the PCA Group, though, our maintenance service and cloud service account for more than half of our net sales, and stable revenue can be expected from these services through continued subscription by our users. Products that require shipping are our packaged enterprise system software such as our accounting software, salary calculation software, and attendance management software, which are supported by revenue from version upgrades by the current customers. Since our products are packaged software that can be installed and implemented by the users themselves, we believe that we can continue to make revenue through remote selling and, when necessary, in-person selling. Therefore, we believe that the impact of COVID-19 on our financial results will be small.

To prevent the spread of COVID-19, we will continue to strictly adhere to our "PCA-Style" (avoiding closed spaces, crowded places, and close contact, as well as disinfecting, checking body temperature, and conducting thorough management of contact tracing) even after the activity restrictions become lifted.

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 with 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.

Amidst this situation, PCA Fest 2022 was held starting in October 2022 as an offline event for the first time in three years, under the theme of "The Day for All You Want to Know about Today's General Affairs, Human Resources, and Accounting." The event covered topics on how to respond to regulations such as the revised Electronic Books Preservation Act and the new invoicing system, as we provided seminars on law revisions which companies will need to prepare for and introduced various services for the digitalization of back-office operations. We believe that this event received much positive feedback.

We are also working on developing our services to help adapt to these regulations, mainly through our PCA Hub series. In November 2022, we released a new service for the PCA Hub eDOC with the addition of an AI-OCR option, a function for automatically reading and registering data from documents such as those related to national taxes.

The number of corporate users of the PCA Cloud series has increased steadily from 12,070 as of the end of March 2019 to 14,327 as of the end of March 2020, 16,444 as of the end of March 2021, 19,152 as of the end of March 2022, and 20,406 as of the end of December 2022 in its 15th year since the launch of service. With PCA Cloud and PCA Cloud on AWS, users can use PCA's software with no initial cost and without having to manage their in-house servers.

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 nine months of this fiscal year were as follows: net sales of 9,533 million yen (-6.0% YOY), operating profit of 1,340 million yen (-47.7% YOY), ordinary profit of 1,372 million yen (-47.2% YOY), and profit attributable to owners of parent of 824 million yen (-63.6% YOY).

The PCA Group only has one business segment, so 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)	865	9.1	(64.9)
Merchandise (ledgers, etc.)	432	4.5	21.0
Maintenance service	2,488	26.1	0.3
Cloud service	4,372	45.9	8.1
Other operating revenue	1,375	14.4	72.0
Total	9,533	100.0	(6.0)
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PCA Corporation (9629): Summary of Consolidated Financial Results for the Third 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 nine months of this fiscal year have been decreased by 2 million yen for merchandise and 27 million yen for the maintenance service, while they have been increased by 13 million yen for the products, 3 million yen for the cloud service, and 13 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 nine months of the previous fiscal year before the change.

(2) Information on Financial Conditions

There are no items to report regarding changes in the first nine months 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

Regarding the forecast of consolidated business results for the fiscal year ending March 31, 2023, please see the "Notice Regarding Revisions of Financial Forecast" released on January 30, 2023. 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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