SIGMAXYZ : Consolidated Financial Results Supplementary Document for the First Three Months of the Fiscal Year Ending March 31, 2023

Consolidated Financial Results Supplementary Document Q1 FY22

August 3, 2022/ SIGMAXYZ Holdings Inc. (Stock Code: 6088)

Outline of Financial Results for Q1 FY22

Summary

• With solid consolidated earnings, the forecast was achieved at 23% of consolidated revenue and 20% of ordinary profit.
• Consulting Business: Our business was led by projects that support corporate transformation, including DX strategy planning, new business and service development, and revitalization of organizations and personnel.
• Investment Business: Made a new investment in Forest Energy Inc., with an investment amount of approx. 200 million yen. At the end of Q1, the cumulative investment balance is approx. 2 billion yen.

				FY22
Unit: JPY mn	Q1 FY21	Q1 FY22	YoY change	Consolidated	Progress
rate	earnings
				forecasts
Consolidated revenue	3,415	3,871	+13%	17,200	23%
(Consulting business)	3,442	3,888	+13%
(*)	(*)
(Investment business)	39	12	-68%
(*)	(*)
Ordinary profit	364	644	+77%	3,180	20%
(Ordinary profit rate)	11%	17%		* Includes internal revenue between
Profit	153	392	+156%	segments
Equity ratio	74%	75%

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Consolidated Income Statement for Q1 FY22

			YoY change
Unit: JPY mn	Q1 FY21	Q1 FY22	Amount	Rate	Major changes
Revenue	3,415	3,871	+455	+13%
					- Increased due to revenue
					growth, overachieved
Gross profit	1,420	1,897	+476	+34%	utilization rate, and lower
outsourcing expenses
					- Increased costs due to getting
S, G&A
1,041	1,265	+224	+22%	back to the normal face to face
expenses	operation
				- Increased hiring expenses
Operating profit	379	631	+252	+67%
Ordinary profit	364	644	+279	+77%
Profit before	364	644	+279	+77%
income tax
Profit	153	392	+239	+156%

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Outline of Earnings by Segment for Q1 FY22

			YoY change
Unit: JPY mn	Q1 FY21	Q1 FY22	Amount	Rate
Consolidated revenue	3,415	3,871	+455	+13%
(Consulting Business)	3,442	3,888	+445	+13%
(Investment Business)	39	12	-26	-68%
(Internal transactions)	-66	-29	+36	―
Segment profit	840	1,092	+252	+30%
(Consulting Business)	846	1,158	+312	+37%
(Investment Business)	-6	-65	-59	―
The segment profit rate for revenue	24%	28%	―	―
(Consulting Business)	25%	30%	―	―
(Investment Business)	―	―	―	―

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Key Performance Indicator (KPI)

	Q1 FY21	Q1 FY22	YoY change
Consolidated revenue	11%	17%		+6%
ordinary profit rate
Consulting Business		End of Q1	End of Q1	YoY change
	FY21	FY22
	Number of	511	514	+1%
	consultants
	Client
	satisfaction	94	96	+2pt
	(NSI*)
		End of FY21	End of Q1	Change
Investment Business		FY22
	Investment	Approx. 1.8	Approx. 2	+ Approx. 200
	balance	billion yen	billion yen	million yen

• NSI (Net Satisfaction Index): Average score from 5 possible ratings for 10 questions evaluating project satisfaction. Conducted in a questionnaire format for client project owners. 5: I really agree: 100 points; 4: I agree: 75 points; 3: I can't say either way: 50 points; 2: I don't agree: 25 points;
• 1. I don't agree at all: 0 points

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