SHIKIGAKU : Financial Results for the 1st Quarter of Fiscal Year Ending February 28, 2023

Financial Results for the 1st Quarter of Fiscal Year Ending February 28, 2023

June 30, 2022

Tokyo Stock Exchange Growth Market（7049）

Table of Contents

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Financial Summary for the 1st Quarter of the Fiscal Year Ending February 28, 2023

Financial Forecast for the Fiscal Year Ending February 28, 2023

©2022 SHIKIGAKU CO., LTD.	2

1. Financial Summary for the 1st Quarter of the Fiscal Year Ending February 28, 2023

Performance Highlights

Segment	Summary	Topics
	Net sales: 1,102 million yen（YoY+30.6%, 103.1％	• Organizational consulting business performed strongly.
	compared with plan）	• Operating income was positive due to the timing of some large
Consolidated
Operating Income：33 million yen（YoY-52.9%）	investments in marketing, which were not recorded until next quarter.
	Net Loss*1：-26 million yen （21million yen in same period	• Net loss due to extraordinary loss resulting from withdrawal from
	of previous year）	contract development business
		① Organizational consulting business sales exceeded the plan (102.7% of
		plan)
		②Platform Service
	Net sales: 1,001 million yen（YoY+37.3%)	Churn rate for basic services remained within the expected range
	Operating profit: 108 million yen（YoY-10.7%)	(about 2-3% on a monthly basis)
	③Consultant Recruitment
Organizational	Sales per consultant: 370 million yen/month（QoQ+5.5%)
Number of candidate consultants hired was 18, exceeding the
Consulting	Number of consultants: 77 as of the end May, 2022 *78 as
quarterly average of 10 in the previous fiscal year
	of June, 2022
	Order backlog：822 million yen（QoQ+8.7%)	④Effectivess of investment in advertising
	*Order backlog for management consulting only	Number of new appointments acquired increased QoQ, surpassing the
		previous record high of 600
		New management consulting contracts: 174 companies, QoQ increase of
		26.1%
Sports	Net sales: 87 million yen（YoY+67.8%)	• Sponsor orders were strong (YoY+64.3%)
Operating profit: -44 million yen (-39 million yen in same
Entertainment	• First B2 playoff appearance in team history since entering B. LEAGUE
period in previous year)
VC Fund	Invested in: 5 companies (4 VC and 1 hands-on support）	• Size of second fund is 710 million yen, greatly exceeding size of first
Hands-on	Investments decided: 1 company
fund.
Support	Investments under consideration: 5 companies

*1 Net loss attributable to owners of parent company	3
©2022 SHIKIGAKU CO., LTD.

1. Financial Summary for the 1st Quarter of the Fiscal Year Ending February 28, 2023

Consolidated Statement of Profit and Loss

• Large-scale marketing initiatives: As a result of thorough deliberations on the content of initiatives in 1Q, some projects have been

pushed back in terms of timing→Some advertising expenses will be recorded in 2Q.

• Gross profit margin in the organizational consulting remained in the upper 80% range.

（Million yen）	FY2022/02	FY2023/02		YoY
1Q（QTD）	1Q（QTD）
Net sales	844	1,102		30.6%
Operating	772	1,068		38.3%
expenses
Personnel	359	500		39.1%
expenses/recruitment
and training costs
Advertising expenses	92	145		57.0%
Rent expenses on land	28	39		40.5%
and buildings
Team operating	65	86		32.2%
expenses/box-office
expenses
Outsourcing expenses	70	65		-6.8%
Other operating	156	231		48.1%
expenses
Operating profit and loss	71	33		-52.9%
EBITDA		88	49		-43.7%
Gross profit margin	72.6%	78.2%		-
*1	Operating expenses = Cost of sales + Selling, general and administrative expenses
*2	Personnel expenses = consultant personnel expenses + Personnel expenses other than consultants

FY2023/02	Rate of Progress
Forecast
4,962	22.2%
4,561	23.4%
2,176	23.0%
800	18.1%
181	22.0%
295	29.2%
146	44.6%
823	24.3%
400	8.4%
474	10.5%
75.4%	-

©2022 SHIKIGAKU CO., LTD.	4

1. Financial Summary for the 1st Quarter of the Fiscal Year Ending February 28, 2023

Summary of Results by Segment

• Organizational Consulting: Management consulting services progressed at 124.1% compared to plan, contributing to an increase in sales.
• Sports Entertainment: Fukushima Firebonds advanced to B2 Playoffs, sponsor orders increased to 160 million yen (YoY+64.3%).
• Contract Development: Decided to withdraw from contract development business and concentrate engineering resources on core consulting business.

		（Million yen）			FY2021/02				FY2022/02		FY2023/02
		1Q	2Q		3Q	4Q	1Q	2Q	3Q	4Q	1Q	YoY
	Net sales	426		540		729	809	844	957	1,006	1,015	1,102	30.6%
	Organizational
	426		515		639		640		729	828	890	873	1,001	37.3%
	Consulting
	Sports Entertainment	―	25		47		119		51	39	72	121	87	67.8%
	VC Fund	―		―		―		―	―	―	―	―	―	―
	Hands-on Support	―		―		―		―		―	―	―	―	―	―
	Other（Contract	―		―		42		50		62	89	43	20	13	-78.5%
	Development）
	Segment Profit	-32		8		61	100	71	129	76	82	33	-52.9%
	Organizational
	-32		39		103	118	121	173	161	109	108	-10.7%
	Consulting
	Sports Entertainment	―		-31		-52		-6		-39	-35	-60	8	-44	―
	VC Fund	―		―		―		―	―	-13	-15	-18	-28	―
	Hands-on Support	―	―		―	―	―	-0	-1	-1	-3	―
	Other（Contract	―	―		-1		-3		-4	-9	10	-9	-10	―
	Development）
*1	As the Sports Entertainment business generates sales of merchandise and ticket revenue during the B. LEAGUE season (October to April), the net sales and operating profit tend to be skewed toward
		the Company's second half of the fiscal year (September to February).
*2	Since Fukushima Sports Entertainment Co., Ltd. has been consolidated since the 2Q of the fiscal year ended February 28, 2021, the figures of the Sports Entertainment business before the 1Q of the
		fiscal year ended February 28, 2021 are shown as "-".
*3	Since MAGES.Lab (currently SHIKI Lab Inc.) has been consolidated since the 3Q of the fiscal year ended February 28, 2021, the figures for the Contract development business before the 2Q of the fiscal
		year ended February 28, 2021 are shown as "-".												5
©2022 SHIKIGAKU CO., LTD.