Financial Results for the Second Quarter

of the Fiscal Year Ending June 30, 2022 [IFRS] (Consolidated)

February 14, 2022

Company name:

QB Net Holdings Co., Ltd.

Listed on: Tokyo Stock Exchange

Code number:

6571

URL: http://www.qbnet.jp/

Representative:

Yasuo Kitano, President CEO

Contact:

Osamu Matsumoto, Director and General Manager of Administration Department

Tel.: +81-3-6418-9190

Scheduled date of quarterly report submission: February 14, 2022

Scheduled date for commencement of dividend payment: -

Supplementary explanatory materials for quarterly financial results: Yes

Quarterly financial results briefings: Yes

(Rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending June 30, 2022 (July 1, 2021 to December 31, 2021)

(1) Consolidated Operating Results (Cumulative)

(Percentages indicate changes from the same period of the previous fiscal year.)

Profit attributable

Total

Revenue

Operating profit

Profit before tax

Profit

to owners of

comprehensive

parent

income

million yen

%

million yen

%

million yen

%

million yen

%

million yen

%

million yen

%

Q2 FYE June 2022

10,178

9.4

804

124.6

727

172.6

493

115.5

493

115.5

550

183.2

Q2 FYE June 2021

9,300

(16.3)

358

(70.5)

266

(76.7)

228

(69.9)

228

(69.9)

194

(75.5)

Basic earnings per

Diluted earnings per

share

share

yen

yen

Q2 FYE June 2022

38.39

36.88

Q2 FYE June 2021

17.95

17.16

(2) Consolidated Financial Position

Equity attributable to

Ratio of equity

Total assets

Total equity

attributable to owners

owners of parent

of parent

million yen

million yen

million yen

%

Q2 FYE June 2022

30,896

10,737

10,737

34.8

FYE June 2021

30,634

10,156

10,156

33.2

2. Dividends

Annual dividends

End-Q1

End-Q2

End-Q3

Year-end

Total

yen

yen

yen

yen

yen

FYE June 2021

0.00

0.00

0.00

FYE June 2022

0.00

FYE June 2022

(Forecast)

(Note)

Revision from the last announcement of dividend forecast: No

The forecast of the year-end dividend for the fiscal year ending June 30, 2022 has not yet been determined.

3. Consolidated Earnings Forecast for the Fiscal Year Ending June 30, 2022 (July 1, 2021 to June 30, 2022)

(Percentages indicate changes from the previous fiscal year.)

Profit

Revenue

Operating profit

Profit before tax

Profit

attributable to

Basic earnings

owners of

per share

parent

million yen

%

million yen

%

million yen

%

million yen

%

million yen

%

yen

Full year

20,840

10.1

1,100

137.3

920

221.2

640

162.4

640

162.4

49.09

(Note)

Revision from the last announcement of earnings forecast: No

- 1 -

* Notes

  1. Changes in significant subsidiaries during the period: No
    (Changes in specific subsidiaries with changes in the scope of consolidation)
    Newly consolidated - companies (Company names) -, Excluded - companies (Company names) -
  2. Changes in accounting policies and accounting estimates
    1. Changes in accounting policies required by IFRS: No
    2. Changes in accounting policies other than (i): No
    3. Changes in accounting estimates: No
  3. Number of shares outstanding (common stock)
  1. Number of shares outstanding at the

end of the period (including treasury

Q2 FYE June 2022

12,874,000

shares

FYE June 2021

12,820,900

shares

shares)

(ii)

Number of treasury shares at the

Q2 FYE June 2022

123

shares

FYE June 2021

123

shares

end of the period

(iii)

Average number of shares

outstanding during the period

Q2 FYE June 2022

12,852,251

shares

Q2 FYE June 2021

12,757,372

shares

(cumulative)

  • Quarterly financial results are not subject to quarterly review by certified public accountants or audit firms.
  • Explanation on the appropriate use of earnings forecasts and other special notes (Notes on forward-looking statements)
    Forward-looking statements and others included in this document, including earnings forecasts, are based on information currently available to and certain premises deemed to be rational by the Company, and it is not committed to achieving such. Actual earnings and others may differ due to various factors.
    (How to obtain supplementary explanatory materials for financial results)
    Supplementary explanatory materials for financial results were disclosed on TDnet on the same day and will also be posted on the Company website. Additionally, a financial results briefing video will be distributed through the Company website on February 21, 2022.

- 2 -

  • Table of Contents for the Attachment

1. Qualitative Information Regarding the Quarterly Financial Results Under Review ...........................................................

4

(1)

Explanation of Operating Results...............................................................................................................................

4

(2)

Explanation of Financial Position ...............................................................................................................................

5

(3)

Explanation of Information on Future Forecasts Including Consolidated Earnings Forecast .....................................

6

2. Condensed Quarterly Consolidated Financial Statements and Main Notes......................................................................

7

(1)

Condensed Quarterly Consolidated Statement of Financial Position .........................................................................

7

(2)

Condensed Quarterly Consolidated Statement of Profit or Loss ................................................................................

8

(3)

Condensed Quarterly Consolidated Statement of Comprehensive Income ...............................................................

9

(4)

Condensed Quarterly Consolidated Statement of Changes in Equity ......................................................................

10

(5)

Condensed Quarterly Consolidated Statement of Cash Flows ................................................................................

12

(6)

Notes on the Condensed Quarterly Consolidated Financial Statements .................................................................

13

- 3 -

1. Qualitative Information Regarding the Quarterly Financial Results Under Review

(1) Explanation of Operating Results

During the consolidated first six months of the fiscal year under review (from July 1, 2021 to December 31, 2021), the Company Group has operated its stores while taking all possible measures to prevent infections amid the impact of new coronavirus infections (hereinafter referred to as "COVID-19") persisting for a long time.

Revenue increased by 877 million yen year on year to 10,178 million yen despite the continued impact of COVID- 19. The status of COVID-19 and its impact on revenue in each country is as described below.

(Million yen)

Cumulative Q2 of

Cumulative Q2 of

Changes

(Excluding

previous fiscal year

current fiscal year

Changes

foreign

(From July 1, 2020 to

(From July 1, 2021 to

exchange

December 31, 2020)

December 31, 2021)

effects)

Domestic

7,747

8,465

717

operations

Overseas

1,553

1,712

159

40

operations

Hong Kong

845

947

101

44

Singapore

403

421

17

(12)

Taiwan

260

254

(5)

(34)

United States

44

90

46

42

Consolidated

10,178

9,300

877

40

(Note) Amounts are after deducting intercompany transactions among group companies.

Amid the state of emergency in effect from July 2021 to September 2021, the Company Group opened its stores while taking all possible measures to prevent infections and maintain good health and hygiene. Revenue increased by 717 million yen year on year. The background is that after the state of emergency was lifted, the number of stores with shortened business hours decreased, and with the number of infections on the decline, foot traffic increased in commercial facilities and public transport stations, resulting in the number of customers visiting our stores, mainly senior people, picking up.

With the situation of infections settling down, the number of customers visiting all our stores including new ones has recovered to the level before the spread of COVID-19. Revenue increased by 101 million yen year on year including foreign exchange effects.

Revenue increased by 17 million yen year on year including foreign exchange effects due to the impact of a depreciation of the yen although infection-preventive measures taken by government agencies remained in effect as the number of new infections rose, resulting in the number of customers visiting our stores decreasing.

Revenue was on a similar level to a year earlier including foreign exchange effects due to the impact of a depreciation of the yen despite a decrease in the number of customers visiting our stores as infection-preventive measures taken by governmental agencies remained in effect in the face of an increase in new infections.

Although new infections continued to occur, the number of customers visiting our stores recovered partly due to an easing of preventive measures taken by government agencies. Revenue increased by 46 million yen year on year partly due to price revisions including foreign exchange effects.

- 4 -

Cost of sales decreased by 124 million yen year on year to 8,136 million yen. The main changes are as follows.

(Million yen)

Item

Changes

Main reasons for change

Personnel expenses

(72)

A decrease in the number of store stylists due to the optimization

of personnel

Outsourcing fees

66

An increase in revenue at consigned salons

Consumables

(84)

A decrease in the purchase number due to the start of the reuse

of combs

Selling, general and administrative expenses decreased by 66 million yen year on year to 1,256 million yen. The main changes are as follows.

(Million yen)

Item

Changes

Main reasons for change

Personnel expenses

(50)

A decrease in in-house haircut school trainees and staff in the

head office

Recruitment

(10)

The Company aired help-wanted ads in TV commercials during

expenses

the previous quarter.

Other operating income decreased by 629 million yen from the same period of the previous fiscal year, when we recorded income from employment adjustment subsidies in Japan, to 41 million yen. Other operating expenses decreased by 6 million yen year on year to 21 million yen.

As a result, consolidated earnings in the first six months of the fiscal year under review were as follows: Revenue amounted to 10,178 million yen (up 9.4% year on year), operating profit was 804 million yen (up 124.6% year on year), profit before tax was 727 million yen (up 172.6% year on year), and profit attributable to owners of parent came to 493 million yen (up 115.5% year on year).

In terms of our store network, we opened 16 stores. The breakdown was 13 stores in Japan, and overseas, one in Hong Kong, Taiwan and the U.S., respectively. Moreover, since we closed seven stores mainly due to redevelopment work of railway stations, we had 723 stores as of the end of the second quarter of the fiscal year under review, an increase of nine stores from the end of the previous fiscal year.

The description by segment is omitted because the Company Group engages in a single segment of the haircutting business.

(2) Explanation of Financial Position

(i) Assets, liabilities and equity

Assets, liabilities and equity at the end of the second quarter under review were as follows:

Current assets increased by 648 million yen from the end of the previous fiscal year to 6,289 million yen. This was mainly due to an increase of 273 million yen in cash and cash equivalents and an increase of 346 million yen in trade and other receivables. Non-current assets decreased by 385 million yen from the end of the previous fiscal year to 24,607 million yen. This was mainly due to a decrease of 77 million yen in property, plant and equipment and a decrease of 361 million yen in right-of-use assets. As a result, assets increased by 262 million yen from the end of the previous fiscal year to 30,896 million yen.

Current liabilities increased by 218 million yen from the end of the previous fiscal year to 7,918 million yen. This was mainly due to a decrease of 155 million yen in lease obligations, an increase of 202 million yen in income taxes payable and an increase of 112 million yen in other current liabilities. Non-current liabilities decreased by 537 million yen from the end of the previous fiscal year to 12,240 million yen. This was mainly due to a decrease of 343 million yen in borrowings and a decrease of 219 million yen in lease obligations. As a result, liabilities decreased by 318 million yen from the end of the previous fiscal year to 20,158 million yen.

Equity increased by 581 million yen from the end of the previous fiscal year to 10,737 million yen. This was mainly due to an increase of 493 million yen in retained earnings.

(ii) Cash flows

Cash and cash equivalents (hereinafter referred to as "cash") at the end of the second quarter under review increased by 273 million yen from the end of the previous fiscal year to 4,875 million yen. Individual cash flows for the first six months of the fiscal year under review and the factors behind them were as follows:

(Cash flows from operating activities)

Cash provided by operating activities was 2,036 million yen (2,050 million yen provided in the same period of the previous fiscal year). This was mainly attributable to factors causing an increase in cash, such as the recording

- 5 -

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QB Net Holdings Co. Ltd. published this content on 01 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 March 2022 06:27:05 UTC.