(English Translation)
This English translation is an abridged version of the original document in Japanese. In the event of any discrepancy, the Japanese version prevails.
May 12, 2021
Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 [IFRS]
Company name: | WILL GROUP, INC. | Listing: Tokyo Stock Exchange, First Section |
Stock code: | 6089 | URL: https://willgroup.co.jp/ |
Representative: | Shigeru Ohara, President and Representative Director | |
Contact: | Satoshi Takayama, Chief Administrative Officer | |
Tel: +81-3-6859-8880 |
Scheduled date of Annual General Meeting of Shareholders: | June 22, 2021 |
Scheduled date of payment of dividend: | June 23, 2021 |
Scheduled date of filing of Annual Securities Report: | June 22, 2021 |
Preparation of supplementary materials for financial results: | Yes |
Holding of financial results meeting: | Yes |
(All amounts are rounded down to the nearest million yen) |
1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 - March 31, 2021)
(1) Consolidated operating results | (Percentages represent year-on-year changes) | |||||||||||||||||||||
Revenue | Operating profit | Profit before tax | Profit | Profit attributable to | Total comprehensive | |||||||||||||||||
owners of parent | income | |||||||||||||||||||||
Fiscal year ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Million yen | % | ||||||||||
118,249 | (3.0) | 4,030 | (2.8) | 3,788 | (6.6) | 2,678 | (1.3) | 2,363 | (0.7) | 4,425 | 204.8 | |||||||||||
Mar. 31, 2021 | ||||||||||||||||||||||
Fiscal year ended | 121,916 | 18.0 | 4,145 | 40.1 | 4,057 | 41.0 | 2,712 | 56.3 | 2,380 | 54.6 | 1,451 | 6.1 | ||||||||||
Mar. 31, 2020 | ||||||||||||||||||||||
Basic earnings per | Diluted earnings per | Ratio of profit to | Ratio of profit before | Ratio of operating | ||||||||||||||||||
equity attributable to | ||||||||||||||||||||||
share | share | owners of parent | tax to total assets | profit to revenue | ||||||||||||||||||
Fiscal year ended | Yen | Yen | % | % | % | |||||||||||||||||
106.35 | 104.59 | 35.1 | 8.3 | 3.4 | ||||||||||||||||||
Mar. 31, 2021 | ||||||||||||||||||||||
Fiscal year ended | 107.07 | 104.75 | 50.5 | 9.1 | 3.4 | |||||||||||||||||
Mar. 31, 2020 | ||||||||||||||||||||||
Reference: Share of profit (loss) of investments accounted for using equity method (million yen) | ||||||||||||||||||||||
Fiscal year ended Mar. 31, 2021: (5) | Fiscal year ended Mar. 31, 2020: - | |||||||||||||||||||||
(2) Consolidated financial position | ||||||||||||||||||||||
Ratio of equity | Equity per share | |||||||||||||||||||||
Equity attributable to | attributable to owners | |||||||||||||||||||||
Total assets | Total equity | attributable to owners | ||||||||||||||||||||
owners of parent | of parent to total | of parent | ||||||||||||||||||||
assets | ||||||||||||||||||||||
Million yen | Million yen | Million yen | % | Yen | ||||||||||||||||||
As of Mar. 31, 2021 | 46,760 | 10,027 | 8,240 | 17.6 | 370.13 | |||||||||||||||||
As of Mar. 31, 2020 | 44,600 | 7,123 | 5,233 | 11.7 | 235.46 |
(3) Consolidated cash flows
Cash flows from | Cash flows from | Cash flows from | Cash and cash equivalents | |
operating activities | investing activities | financing activities | at end of period | |
Million yen | Million yen | Million yen | Million yen | |
Fiscal year ended Mar. 31, 2021 | 4,316 | (433) | (2,646) | 7,455 |
Fiscal year ended Mar. 31, 2020 | 4,908 | (3,035) | (2,631) | 5,944 |
2. Dividends
Dividend per share | Ratio of dividends to | |||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | Total dividends | Payout ratio | equity attributable to | |
(consolidated) | owners of parent | |||||||
(consolidated) | ||||||||
Yen | Yen | Yen | Yen | Yen | Million yen | % | % | |
Fiscal year ended Mar. 31, 2020 | - | 0.00 | - | 23.00 | 23.00 | 511 | 21.5 | 10.8 |
Fiscal year ended Mar. 31, 2021 | - | 0.00 | - | 24.00 | 24.00 | 541 | 22.6 | 7.9 |
Fiscal year ending Mar. 31, 2022 | - | 0.00 | - | 25.00 | 25.00 | 30.2 | ||
(forecast) | ||||||||
3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)
(Percentages represent year-on-year changes)
Profit attributable to | Basic | ||||||||||||
Revenue | Operating profit | Profit before tax | Profit | earnings per | |||||||||
owners of parent | share | ||||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |||
First half | 58,800 | 1.1 | 1,200 | (46.0) | 1,150 | (44.9) | 760 | (50.1) | 650 | (50.2) | 29.24 | ||
Full year | 121,000 | 2.3 | 3,400 | (15.6) | 3,270 | (13.7) | 2,050 | (23.5) | 1,840 | (22.2) | 82.78 |
* Notes
(1) Changes in significant subsidiaries during the period (changes in scope of consolidation): None
Newly added: - | Name: - | Excluded: - | Name: - |
- Changes in accounting policies and accounting-based estimates
- Changes in accounting policies required by IFRS: None
- Changes in accounting policies other than 1) above: None
- Changes in accounting-based estimates: None
- Number of outstanding shares (common stock)
- Number of shares outstanding at the end of period (including treasury shares)
As of Mar. 31, 2021: | 22,554,500 shares | As of Mar. 31, 2020: | 22,321,400 shares |
2) Number of treasury shares at the end of period | |||
As of Mar. 31, 2021: | 290,379 shares | As of Mar. 31, 2020: | 95,303 shares |
3) Average number of shares outstanding during the period | |||
Fiscal year ended Mar. 31, 2021: | 22,226,808 shares | Fiscal year ended Mar. 31, 2020: | 22,230,812 shares |
Note: Treasury shares at the end of period include shares owned by Employee Stock Ownership Plan. (285,000 shares as of Mar. 31, 2021)
Reference: Summary of Non-consolidated Financial Results
Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 - March 31, 2021)
(1) Non-consolidated operating results | (Percentages represent year-on-year changes) | ||||||||||||
Net sales | Operating profit | Ordinary profit | Profit | ||||||||||
Fiscal year ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||||
4,576 | 30.7 | 1,558 | 27.7 | 2,019 | 128.8 | 1,819 | 5.6 | ||||||
Mar. 31, 2021 | |||||||||||||
Fiscal year ended | 3,502 | 7.1 | 1,220 | 26.6 | 882 | (5.8) | 1,722 | 90.6 | |||||
Mar. 31, 2020 | |||||||||||||
Net income per share | Diluted net income per share | ||||||||||||
Fiscal year ended | Yen | Yen | |||||||||||
81.84 | 80.48 | ||||||||||||
Mar. 31, 2021 | |||||||||||||
Fiscal year ended | 77.50 | 75.82 | |||||||||||
Mar. 31, 2020 | |||||||||||||
(2) Non-consolidated financial position | |||||||||||||
Total assets | Net assets | Equity ratio | Net assets per share | ||||||||||
Million yen | Million yen | % | Yen | ||||||||||
As of Mar. 31, 2021 | 20,728 | 10,023 | 48.3 | 449.52 | |||||||||
As of Mar. 31, 2020 | 20,826 | 8,806 | 42.2 | 395.30 | |||||||||
Reference: Shareholders' equity (million yen) | As of Mar. 31, 2021: 10,008 | As of Mar. 31, 2020: 8,786 |
Reasons for differences compared with non-consolidated financial results for the previous fiscal year:
Results of operations for the fiscal year under review differ compared with those for the previous fiscal year as a result of increases in dividends from subsidiaries and associates, management fee income, and foreign exchange gain.
- This financial report is not subject to audit by certified public accountants or auditing firms.
-
Explanation of appropriate use of earnings forecasts and other special items
Forecasts of future performance in this report are based on assumptions judged to be valid and information available to the Company's management at the time the materials were prepared, but are not promises by the Company regarding future performance. Actual results may differ significantly from these forecasts for a number of reasons. Please refer to "1. Overview of Results of Operations, (5) Outlook" on page 5 for forecast assumptions and notes of caution for usage.
WILL GROUP, INC. (6089) Financial Results for FY3/21 | ||
Contents of Attachments | ||
1. Overview of Results of Operations | 2 | |
(1) | Results of Operations | 2 |
(2) | Financial Position | 3 |
(3) | Cash Flows | 4 |
(4) | Basic Policy for Profit Distribution and Dividends in the Current and Next Fiscal Years | 4 |
(5) | Outlook | 5 |
2. Basic Approach to the Selection of Accounting Standards | 6 | |
3. Consolidated Financial Statements and Notes | 7 | |
(1) | Consolidated Statement of Financial Position | 7 |
(2) | Consolidated Statements of Profit or Loss and Comprehensive Income | 9 |
(3) | Consolidated Statement of Changes in Equity | 11 |
(4) | Consolidated Statement of Cash Flows | 12 |
(5) | Notes to Consolidated Financial Statements | 13 |
Going Concern Assumption | 13 | |
Segment and Other Information | 13 | |
Per Share Information | 15 | |
Subsequent Events | 15 |
1
WILL GROUP, INC. (6089) Financial Results for FY3/21
1. Overview of Results of Operations
(1) Results of Operations
In the fiscal year ended March 31, 2021, although some signs of recovery were observed, the economy still remained grim, and the employment situation was weak due to the impact of the novel coronavirus disease ("COVID-19"). Looking ahead, while we can expect a recovery thanks to various governmental policies and improvements in overseas economies as vaccines proliferate and measures are taken to halt the spread of the disease, with states of emergency once again being declared in major cities, the impact of further waves of COVID-19 on domestic and overseas economies needs to be carefully monitored.
The Company and its subsidiaries (the "Group") limited the impact of the COVID-19 infection thanks to our business portfolio focusing on several specific categories in less fluctuating business domains.
In Japan, the state of emergency was lifted in late May 2020 and the economy has gradually restarted with COVID-19 infection prevention measures. The sales outsourcing and factory outsourcing sectors were partly impacted by the spread of COVID-19, but the other sectors remained solid.
Outside Japan, Singapore and Australia, where we have our main presence, have currently managed to contain the spread of the COVID-19 infection and are gradually returning to the normal even though their economic resumption lagged behind that of Japan. Given such circumstance, temporary staffing services performed strong thanks to stable demand.
Additionally, we strived to secure profit primarily by reviewing new investment plans and headquarters cost, in addition to the recording of employment support subsidy income as a countermeasure against COVID-19 in Singapore.
As a result, for the fiscal year ended March 31, 2021, the Company reported consolidated revenue of 118,249 million yen (down 3.0% year on year), operating profit of 4,030 million yen (down 2.8%), profit before tax of 3,788 million yen (down 6.6%), profit of 2,678 million yen (down 1.3%) and profit attributable to owners of parent of 2,363 million yen (down 0.7%). EBITDA (operating profit + depreciation and amortization + impairment losses) was 6,259 million yen (up 2.0%).
Results by operating segment were as follows.
As a result of examining our business portfolio management to enhance corporate strategies, we have realigned the previous reportable segment classification consisting of six segments: Sales Outsourcing Business, Call Center Outsourcing Business, Factory Outsourcing Business, Care Support Business, Overseas Human Resources Business, and HR Support Business for Startups developed by for Startups, Inc. The new segment classification effective from the beginning of the first quarter of the fiscal year ending March 31, 2021 consists of two segments only: Domestic WORK Business and Overseas WORK Business. Accordingly, prior-year segment information has been revised to reflect the new segment classification to permit comparisons.
1) Domestic WORK Business
The Domestic WORK Business offers temporary staffing, permanent placement and consignment services in Japan specifically for sectors such as sales outsourcing, call center outsourcing, factory outsourcing and care support/nursery schools. The apparel and sales promotions sectors in the sales outsourcing sector and the factory outsourcing sector saw decreased demand due to the impact of COVID-19. However, the sectors such as call center outsourcing and care support/nursery schools enjoyed solid demand and grew strongly despite the slow recovery of recruitment. Each sector focused on developing new clients for new services including a service to perform proxy marketing and a contact center service by the staff all working from home, anticipating a phase with and post COVID-19.
For the fiscal year ended March 31, 2021, earnings declined due to decreased revenue in the sales outsourcing and factory outsourcing sectors.
As a result, the segment recorded external revenue of 80,050 million yen (down 5.2% year on year) and segment profit of 4,253 million yen (down 16.0%).
2
WILL GROUP, INC. (6089) Financial Results for FY3/21
2) Overseas WORK Business
In the human resources service, that operates in the ASEAN and Oceania regions, temporary staffing business remained stable mainly for the public sector, engineering, finance services and legal services despite the spread of COVID-19. While permanent placement business was suffering lower demand, impacted by the economic downturn and sluggish corporate activities in Australia and Singapore, the demand is showing a sign of recovery thanks to current successful result in containing the spread of infection.
For the fiscal year ended March 31, 2021, earnings for this business segment increased as decreased revenue from permanent placement services were overcome by the increased revenue from temporary staffing services, fixed cost review and the recording of employment support subsidy income as a countermeasure against COVID-19 in Singapore.
As a result, the segment recorded external revenue of 36,920 million yen (up 2.3% year on year) and segment profit of 1,106 million yen (up 13.8%).
3) Others
In the other businesses, we made efforts to strengthen the development of new platforms, such as "Hourmane," a working time management system for foreign workers, and "ENPORT," a foreign worker support service, all with a view to expanding beyond labor intensive businesses. Additionally, we sold Tech Residence, an apartment building for IT engineers and creators in the first quarter. As for our newly-launched "Daywak" service, an app to find a part-time job using free time, our existing customer base and staff base, which we had initially expected to use it, were unable to gain much from it, so in April 2021 we ended provision of the service.
For the fiscal year ended March 31, 2021, this business segment posted a profit on the back of the expansion of the existing businesses and a partial sale of shares owned by our investment funds, despite continued upfront investments in the new field. However, we reversed the gain on the sale of the shares when making IFRS adjustments.
As a result, the segment recorded external revenue of 2,121 million yen (up 36.9% year on year) and segment loss of 166 million yen (compared with segment loss of 352 million yen a year earlier).
- Financial Position Assets
Current assets at the end of the current fiscal year amounted to 22,570 million yen, up 1,528 million yen from the end of the previous fiscal year. This is primarily due to increases in cash and cash equivalents of 1,511 million yen and other financial assets of 438 million yen, which was partially offset by a decrease in trade and other receivables of 373 million yen.
Non-current assets amounted to 23,190 million yen at the end of the current fiscal year, up 631 million yen from the end of the previous fiscal year. This is primarily due to increases in other intangible assets of 593 million yen, goodwill of 500 million yen and investments accounted for using equity method of 495 million yen, which were partially offset by decreases in right-of-use assets of 485 million yen and property, plant and equipment of 232 million yen.
As a result, total assets increased 2,160 million yen from the end of the previous fiscal year to 46,760 million yen.
Liabilities
Current liabilities at the end of the current fiscal year amounted to 24,790 million yen, up 3,223 million yen from the end of the previous fiscal year. This is primarily due to increases in borrowings of 1,687 million yen, other financial liabilities of 1,240 million yen, and trade and other payables of 1,239 million yen, which were partially offset by a decrease in income taxes payable of 601 million yen.
Non-current liabilities amounted to 11,943 million yen at the end of the current fiscal year, down 3,966 million yen from the end of the previous fiscal year. This is primarily due to decreases in borrowings of 2,609 million yen and other financial liabilities of 1,449 million yen.
As a result, total liabilities decreased 742 million yen from the end of the previous fiscal year to 36,733 million yen.
3
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Will Group Inc. published this content on 01 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 June 2021 03:01:07 UTC.