Sohgo Security Services : Summary of Selected Financial Data for the First Quarter Ended June 30, 2023

Summary of Selected Financial Data First Quarter Ended June 30, 2023

Sohgo Security Services Co., Ltd.

1. Consolidated Financial Results

(1) Consolidated Statements of Income
		1Q Accounting Period			2Q Accounting Period		Financial Results
				Increase/				FY2024		Increase/		FY2024		Increase/
		FY2023	FY2024	Decrease		FY2023		Decrease	FY2023		Decrease
			(Forecast)		(Forecast)
				(%)						(%)			(%)
Net Sales		114.0	121.5	6.7			236.0	245.0			3.8	492.2	512.5		4.1
(Billion yen)
Operating Income		7.1	8.6	21.1			15.2	16.5			8.4	36.9	38.6		4.3
(Billion yen)
Ordinary Income		7.8	9.1	16.7			16.5	17.8			7.5	39.2	41.0		4.5
(Billion yen)
Profit Attributable to
Owners of Parent		4.4	5.1	16.6			9.7	11.1			13.7	23.9	25.5		6.5
(Billion yen)
Net Income Per Share		8.80	10.26	－			19.29	21.93			－	47.32	50.38		－
(Yen)
(2) Consolidated Balance Sheets
		FY2022 1Q	FY2023 1Q	FY2024 1Q
Total Assets		470.5	498.1	514.9
(Billion yen)
Net Assets		306.5	327.9	345.3
(Billion yen)
Equity Ratio		59.5	60.4	61.7
(%)
Net Assets Per Share		552.68	594.23	627.60
(Yen)
(3) Consolidated Statements of Cash Flows
		FY2022 1Q	FY2023 1Q	FY2024 1Q
Net Cash provided by (used
in) Operating Activities		(2.1)	6.9	18.2
(Billion yen)
Net Cash provided by (used
in) Investing Activities (Billion		(1.9)	(11.7)	(1.8)
yen)
Net Cash provided by (used
in) Financing Activities		(2.3)	(5.7)	(3.9)
(Billion yen)
Cash and Cash Equivalents at
End of Period		46.7	53.4	64.1
(Billion yen)
(4) Dividend
							Dividends Per Share
		End of 1Q	End of 2Q		End of 3Q		Year-end		Annual
		Yen	Yen			Yen			Yen		Yen
FY2023		－	－	43			00	－			－	43	00		86
FY2024(Forecast)		－	－	8			60	－			－	8	60		17

2. Major Items

(1) Sales by Business Segment						(Billion yen)
			Increase/			Increase/
	FY2023 1Q	Share(%)	Decrease	FY2024 1Q	Share(%)	Decrease
			(%)			(%)
Security Services
Electric Security Services	41.9	36.8	(3.6)	44.2	36.4	5.4
Stationed Security Services	30.5	26.8	2.9	31.3	25.8	2.9
Transportation Security Services	16.7	14.7	1.0	16.7	13.8	(0.3)
Total	89.2	78.3	(0.6)	92.3	76.0	3.5
General Property Management	12.9	11.4	(15.8)	15.4	12.7	19.1
and Fire Protection Services
Long-Term Care Services	10.4	9.1	1.1	12.5	10.3	20.2
Total for Reportable Segments	112.6	98.8	(2.5)	120.3	99.0	6.8
Other Services	1.3	1.2	(9.9)	1.2	1.0	(6.8)
Total	114.0	100.0	(2.6)	121.5	100.0	6.7
(2) Contracts by Business Segment					(Contract: Thousands)
	FY2021	FY2022 1Q	FY2022 4Q	FY2023 1Q	FY2023 4Q	FY2024 1Q
Security Services
Electric Security Services	990	997	1,009	1,015	1,029	1,049
Corporate Clients	540	543	548	551	556	564
Individual Clients	449	453	460	463	473	485
Stationed Security Services	4	4	4	4	4	4
Transportation Security Services	79	79	79	86	86	87
Total	1,073	1,080	1,093	1,105	1,120	1,141
General Property Management	113	115	119	119	121	123
and Fire Protection Services
Long-Term Care Services	27	27	27	26	27	27
Total for Reportable Segments	1,215	1,224	1,239	1,251	1,269	1,292
Other Services	29	33	34	23	23	24
Total	1,244	1,258	1,274	1,274	1,293	1,317
	FY2022 1Q	Increase/	FY2023 1Q	Increase/	FY2024 1Q	Increase/
	Increase/	Decrease	Increase/	Decrease	Increase/	Decrease
	Decrease	(%)	Decrease	(%)	Decrease	(%)
Security Services
Electric Security Services	7	0.7	5	0.6	19	1.9
Corporate Clients	3	0.7	2	0.5	7	1.4
Individual Clients	3	0.8	2	0.6	11	2.5
Stationed Security Services	0	0.6	(0)	(2.5)	0	2.7
Transportation Security Services	(0)	(0.0)	6	8.1	1	2.2
Total	7	0.7	12	1.1	21	1.9
General Property Management	1	1.7	0	0.1	1	0.9
and Fire Protection Services
Long-Term Care Services	0	0.7	(0)	(2.8)	0	1.2
Total for Reportable Segments	9	0.8	11	0.9	22	1.8
Other Services	3	13.2	(11)	(33.7)	1	4.7
Total	13	1.1	(0)	(0.0)	24	1.9

1. Consolidated / Non-consolidated Ratio (Ratio of when individual financial results counted as 1) (Times)

		FY2022 1Q	FY2023 1Q	FY2024 1Q
Net Sales		1.92	1.92	1.94
Operating Income		2.06	2.41	1.98
Ordinary Income		0.69	0.52	0.53
Profit Attributable to		0.47	0.31	0.33
Owners of Parent
Total Assets		1.48	1.44	1.43
(4) Trends in Personnel
								(Personnel)
		FY2021	FY2022 1Q	FY2022		FY2023 1Q	FY2023	FY2024 1Q
Employees		38,444	39,105	38,192		38,680	39,039	39,621
		FY2022 1Q	Increase/	FY2023 1Q		Increase/	FY2024 1Q	Increase/
	Increase/	Decrease	Increase/		Decrease	Increase/	Decrease
previous period>
	Decrease	(%)	Decrease		(%)	Decrease	(%)
Employees		661	1.7	488		1.3	582	1.5
(5) Capital Expenditure / Depreciation / Research and Development Expenditure
									(Billion yen)
			Increase/			Increase/		Increase/	FY2024
		FY2022 1Q	Decrease	FY2023 1Q		Decrease	FY2024 1Q	Decrease
			(Forecast)
			(%)			(%)		(%)
Capital Expenditure		2.8	(8.5)	2.9		2.4	2.7	(5.3)	21.1
Depreciation		3.9	0.5	4.2		8.2	4.4	4.7	19.1
Research and		0.1	3.0	0.1		16.3	0.1	(3.2)	0.6
Development

3. Consolidated Financial Statements

(1) Consolidated Statements of Income

(Billion yen)

	FY2023 1Q	FY2024 1Q	YoY
						Increase/
	Amount	Share(%)	Amount	Share(%)	Amount	Decrease
						(%)
Net Sales	114.0	100.0	121.5	100.0	7.5	6.7
Cost of Sales	85.5	75.0	91.3	75.1	5.8	6.8
Gross Profit	28.4	25.0	30.2	24.9	1.7	6.2
Selling, General and Administrative	21.3	18.7	21.5	17.7	0.2	1.1
Expenses
Operating Income	7.1	6.3	8.6	7.2	1.5	21.1
Non-operating Income	1.3	1.2	1.1	0.9	(0.2)	(15.2)
Non-operating Expenses	0.6	0.6	0.6	0.5	(0.0)	(0.2)
Ordinary Income	7.8	6.9	9.1	7.6	1.3	16.7
Extraordinary Income	0.0	0.0	0.0	0.0	0.0	-
Extraordinary Loss	0.0	0.0	0.0	0.1	0.0	219.3
Profit Attributable to Owners of parent	4.4	3.9	5.1	4.3	0.7	16.6

(2) Consolidated Statements of Income (Main variable factors)

(Billion yen)

	YoY
		Increase/	Factors
	Amount	Decrease
		(%)
			Security Services	3.0
			Electronic Security Services	2.2
			Stationed Security Services	0.8
			Transportation Security Services	(0.0)
Net Sales	7.5	6.7	General Property Management and Fire Protection Services	2.4
			Long-Term Care Services	2.1
			Other Services	(0.0)
Cost of Sales	5.8	6.8
Gross Profit	1.7	6.2
Selling, General and Administrative	0.2	1.1
Expenses
Operating Income	1.5	21.1
Non-operating Income	(0.2)	(15.2)
Non-operating Expenses	(0.0)	(0.2)
Ordinary Income	1.3	16.7
Extraordinary Income	0.0	-
Extraordinary Loss	0.0	219.3
Profit Attributable to Owners of parent	0.7	16.6